The crypto industry faced another tumultuous year in 2024. Cybercriminals stole an unprecedented $2.2 billion from crypto platforms, according to a recent report by blockchain analytics firm Chainalysis.
This marks a significant 21% increase in thefts compared to 2023, continuing a concerning trend of escalating cyberattacks on the digital asset ecosystem.
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2024: A Year Of Escalating Cyberattacks On Crypto Market
For the fifth consecutive year, thefts from cryptocurrency platforms exceeded $1 billion, with the number of incidents rising from 282 in 2023 to 303 in 2024.
The first half of the year alone accounted for $1.5 billion in losses, setting the stage for what could have been an even more catastrophic total by year’s end.
However, the frequency and scale of attacks tapered off in the latter half of the year.
Two major incidents dominated headlines early in 2024:
DMM Bitcoin Hack (May): The Japanese platform suffered a $305 million breach, forcing its owners to shut down operations and sell off assets to SBI Group.
WazirX Hack (July): The Indian exchange lost nearly $235 million, leading to the arrest of a suspect in West Bengal later in November.
In DMM Bitcoin’s case, Chainalysis tracked the stolen funds as they were laundered through multiple platforms and eventually cashed out via Huione Guarantee, a Cambodian financial hub linked to organized crime and cyber scams.
“We began the year on pace to be among the worst on record for stolen funds. Starting around July, however, we observed hacking volumes drop precipitously, coinciding with Putin’s meeting with Kim Jong Un,” said Eric Jardine, Head of Cybercrimes Research. “Despite the slowdown, private key compromises remain a significant concern, especially as larger institutions begin to participate in the cryptocurrency ecosystem.”
“While crypto theft levels remain below the highs of 2021 and 2022, this year’s resurgence exposes critical gaps in security and highlights the need for adaptive measures,” Jardine added. ” Collaboration between the public and private sectors, real-time web3 security solutions, advanced blockchain analysis, and targeted training are essential to proactively identify threats and keep crypto safe.”
An estimated $24 million in crypto was stolen by impersonators and tax authority scams in 2023, @chainalysis says.
The firm estimates that the total amount stolen is nearly $17 million for 2024 as of April.
Watch "Chart of the Day" explain the data, presented by @cryptocom. pic.twitter.com/3zoIu0UGvY
— CoinDesk (@CoinDesk) May 13, 2024
North Korea: A Persistent Threat
North Korean hacking groups emerged as the most prolific perpetrators of crypto thefts in 2024, responsible for $1.34 billion across 47 incidents.
This represents a dramatic increase from the $660.5 million stolen in 20 attacks during 2023.
According to Chainalysis, these groups have become “notorious” for their sophisticated heists, which are believed to fund North Korea’s ballistic missile programs and help circumvent international sanctions.
The report highlighted several alarming trends. For example, incidents involving thefts between $50 million and over $100 million became more frequent. North Korean hackers also targeted smaller platforms, stealing amounts as low as $10,000.
In one notable case, hackers linked to North Korea’s Reconnaissance General Bureau exploited vulnerabilities at Radiant Capital, stealing over $50 million through innovative methods.
Interestingly, Chainalysis observed a sharp decline in North Korean-linked attacks after July.
This drop coincided with a summit between Russian President Vladimir Putin and North Korean leader Kim Jong Un in June.
Following the meeting, Russia reportedly provided North Korea with financial and military support, while Pyongyang allegedly sent soldiers to assist Russia’s war efforts in Ukraine. The amount stolen by North Korean groups fell by approximately 53.73% after this summit.
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