Crypto hacks hit $2.2B in 2024

•  North Korea linked to over 50%

Joy Agwunobi

Crypto hacking remains a growing threat, with each of the past four years seeing over a billion dollars in stolen crypto. As 2024 marks the fifth consecutive year of rising crypto theft, the surge in both the adoption of cryptocurrencies and their increasing value continues to present more lucrative opportunities for hackers.

A recent report by Chainalysis, a blockchain analysis firm, reveals that stolen funds have increased by 21.07 per cent  year-over-year, reaching $2.2 billion in 2024. Additionally, the number of individual hacking incidents has also risen, from 282 in 2023 to 303 in 2024.

According to the findings, the cumulative value stolen between January and July 2024 hit $1.58 billion, reflecting an 84.4 per cent  increase over the same period in the previous year.

The report  also highlighted a shift in the types of platforms targeted by hackers. In previous years, decentralised finance (DeFi) platforms were the primary victims, largely due to their rapid growth and weak security protocols.. “Developers in the DeFi space prioritised bringing products to market over implementing robust security, making these platforms prime targets,” Chainalysis explained.

Although DeFi platforms accounted for the largest share of stolen assets in early 2024, centralised platforms became the main target in the second and third quarters with notable breaches including the theft of $305 million from DMM Bitcoin in May and $234.9 million from WazirX in July.

The shift underscores the critical need to secure private keys, which emerged as the most exploited vulnerability in 2024, accounting for 43.8 per cent  of stolen funds, according to the report, hackers often employed sophisticated laundering techniques, funneling stolen crypto through decentralised exchanges (DEXs), bridges, and mixing services to obscure transaction trails.

One of the most concerning revelations from the report was the role of North Korea-linked hacking groups. These groups were responsible for $1.34 billion in crypto theft across 47 incidents in 2024, a 102.88 per cent  increase from $660.5 million in 2023 which  accounted for 61 per cent  of the total stolen funds for the year and 20 per cent of total incidents.

The report notes that ‘North Korea’s state-sponsored hacking activities are often used to fund weapons development programmes and evade international sanctions. These cybercriminals have become notorious for their advanced tradecraft, using sophisticated malware and social engineering tactics to steal cryptocurrency that funds ballistic missiles and weapons of mass destruction programmes, hence endangering global security.”

In response to these challenges, the report outlined proactive measures that leverage predictive technologies and foster collaboration between public and private sectors. Chainalysis highlighted its recent acquisition of Hexagate, a leading Web3 security solutions provider, to enhance real-time threat detection and mitigation.

The report stresses the importance of collaboration between the public and private sectors to effectively combat crypto theft. It noted that initiatives like data sharing, real-time security solutions, advanced tracing tools, and targeted training can empower stakeholders to quickly identify and neutralise malicious actors.

“As regulatory frameworks for crypto evolve, increased scrutiny on platform security and customer asset protection will become a priority. To ensure effective prevention and accountability, the crypto industry must keep pace with best practices while fostering stronger partnerships with law enforcement and equipping security teams with the necessary resources,” Chainalysis stated.