Cryptocurrency hacking reached a new high in 2024, with stolen funds surging 21% to $2.2 billion, according to a report by blockchain analysis firm Chainalysis. This marks the fourth consecutive year that hacking losses have exceeded $1 billion.
The increase in crypto heists coincides with Bitcoin’s remarkable 140% surge this year, surpassing the $100,000 mark and attracting both institutional investors and support from US President-elect Joe Biden.
“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. Combating these crimes, especially fraud, will be a major challenge for the industry in the coming year.
The report highlights that compromises to private keys, which control access to users’ assets, were the primary cause of stolen crypto. Centralized platforms were the main targets of these attacks. Notable incidents include the theft of over $305 million from Japan’s DMM Bitcoin exchange and $235 million from India’s WazirX.
North Korea-linked crypto hacking more than doubled from the previous year, reaching a record $1.3 billion in 2024. It is believed that cryptocurrency allows North Korea to bypass international sanctions, although the country denies any involvement in cyber hacking or crypto theft.