2024 Crypto Hacks Total $2.2 Billion in Losses
With 303 breaches and $2.2 billion stolen, 2024 marked a dangerous year for crypto. The amount lost represents a 21.07% increase from 2023, underscoring the rising cybersecurity threats.
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Mid-Year Spike in Crypto Hacks
The first six months of 2024 saw an alarming spike in crypto thefts, as outlined in Chainalysis' annual blockchain report. By July, $1.58 billion had been stolen—up 84.4% compared to the same period in 2023.
While experts anticipated a record-breaking year exceeding the $3 billion stolen in 2021 and 2022, hacker activity sharply declined after July, likely influenced by factors detailed below.
Chart: Cryptocurrency Theft and Hack Numbers, 2015–2024. Source: Chainalysis
DeFi or Centralized Systems: Where Are Hackers Striking Next?
In 2024, the dynamics of platform vulnerabilities shifted. DeFi platforms were the primary targets in the first quarter, plagued by “growing pains” resulting from rapid scaling and underdeveloped security protocols..
As the year progressed into the second and third quarters, however, centralized platforms increasingly became the target of choice.
Major breaches, like the $305 million DMM Bitcoin hack in May and the $234.9 million WazirX incident in July, highlight the urgent need to prioritize private key protection. These attacks, involving compromised private keys, represented 43.8% of stolen cryptocurrency in 2024, making them the leading threat vector in the industry.
Platform Categories Targeted by Hackers. Source: Chainalysis
Check out: DMM Bitcoin Shuts Down, Transfers Assets to SBI Group
Following a theft, hackers employ sophisticated laundering methods. In 2024, bridges and mixers became popular tools to obscure transaction histories. On the other hand, attackers utilizing different approaches showed a preference for decentralized exchanges (DEX) to manage their stolen assets.
$1.34 Billion in Stolen Crypto: North Korea Leads the Charge
With $1.34 billion stolen in 47 incidents, North Korean hackers have claimed 61% of this year’s illicit crypto haul. The scale of these operations reveals their deep dependence on cyber theft to bankroll state projects.
Hacker Activity Breakdown: North Korea. Source: Chainalysis
Rising Wave of Cyberattacks
Cybercriminals stepped up their game in 2024, with a surge in attacks causing losses between $50 million and $100 million, alongside a noticeable rise in those exceeding $100 million. Meanwhile, minor-scale breaches involving $10,000 or less have grown, possibly as a strategy to diversify risks or avoid attracting attention. This is a marked shift from previous years, when most attacks targeted sums below $50 million..
North Korean hackers are implicated in several high-profile cases, using forged documents and remote job roles to infiltrate companies through social engineering. In one instance, 14 North Korean operatives were charged by U.S. authorities for stealing $88 million.
Hacking Trends: North Korea’s Timeline of Success. Source: Chainalysis
Related: AI: North Korea's Latest Tool in Cyber Warfare
Geopolitics’ Influence on Cybersecurity Threats
Stolen funds experienced a sharp 53.73% decline after July 1, 2024, paralleling the June summit between Vladimir Putin and Kim Jong Un. It’s hypothesized that North Korea redirected its cyber resources to support Russia amid the Ukraine war. Yet, this hypothesis remains to be fully substantiated.
Post-July Cyber Decline Among North Korean Hackers. Source: Chainalysis
Strengthening Crypto Security Amid Growing Threats
The surge in cybercrime demands immediate action from the crypto sector. Companies must adopt stricter employee verification processes and ensure private keys are well-protected. Establishing closer ties with authorities and investing in rapid-response systems are also essential strategies.
By prioritizing these initiatives, the industry can shield client funds and foster greater trust, a critical need in an era of relentless cyber threats.
Read on: WhiteBIT’s Cybersecurity Tips
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