Losses from crypto hacks surge to $2.2b in 2024 – report
Losses from cryptocurrency platform hacks soared to $2.2 billion in 2024, marking a 21 per cent increase from the $1.8 billion stolen in 2023, according to a report by blockchain analysis firm Chainalysis released on Thursday.
The number of hacking incidents also rose, with 303 reported this year compared to 282 in 2023.
This marks the fourth consecutive year where hacking-related losses have exceeded $1 billion, coinciding with a massive surge in bitcoin’s value. Bitcoin gained 140 per cent in 2024, crossing the $100,000 threshold and attracting heightened institutional interest, bolstered by support from US President-elect Donald Trump.
“As the digital asset market booms, it is typical to see the illicit use of crypto grow in tandem,” said Eric Jardine, Chainalysis’ cybercrimes research lead. “Countering the proliferation of these crimes — especially fraud — will undoubtedly be a key challenge for the industry in the new year.”
The majority of stolen cryptocurrency this year resulted from the compromise of private keys, which provide access to users’ assets. Centralised platforms were the primary targets of these attacks.
Significant breaches included the $305 million theft from Japan’s crypto exchange DMM Bitcoin in May and the $235 million hack of India’s WazirX in July.
North Korea’s Role in Crypto Heists
Crypto hacks linked to North Korea more than doubled in 2024, reaching a record $1.3 billion. According to Chainalysis, the regime uses stolen cryptocurrency to evade international sanctions. While the United Nations has acknowledged these activities, North Korea consistently denies involvement in cybercrimes or cryptocurrency thefts.
The rise in crypto theft underscores the growing pains of the rapidly expanding digital asset market. As cryptocurrencies continue to gain mainstream acceptance, the industry faces mounting pressure to enhance security measures and mitigate the risks posed by increasingly sophisticated cybercriminals.
With fraud and hacking expected to remain significant threats, combating cybercrime will be a critical focus for the cryptocurrency sector as it enters 2025.
Attribution: Amwal Al Ghad English
