In 2024, the cryptocurrency hacking landscape experienced a dramatic increase in incidents, with a total of $2.2 billion stolen across 303 reported breaches. This surge marked a 21.07% year-over-year increase and highlighted the persistent threat that cyberattacks pose to the growing crypto market.
The year started off with a significant rise in hacking activity, with losses reaching $1.58 billion by July, surpassing the figures from the previous year by an astonishing 84.4%. It appeared that 2024 was on track to break records set in 2021 and 2022, but the intensity of attacks slowed down considerably in the second half of the year, leading to a more stable loss trajectory for the remainder of the year.
One notable trend in 2024 was the shift in the targets of crypto hacks. While DeFi platforms were the primary targets in previous years, centralized services became the main focus for hackers in 2024. Private key compromises emerged as the leading cause of crypto theft, with the $305 million DMM Bitcoin hack serving as a cautionary tale of the consequences of inadequate security measures in centralized exchanges.
Hackers in 2024 laundered stolen funds through various means, including bridges, mixing services, and DEXs, showcasing the evolving tactics employed by different types of crypto attackers. Notably, North Korean hackers played a significant role in the crypto theft landscape, stealing $1.34 billion across 47 incidents, representing 61% of the total funds stolen that year. This demonstrated their continued reliance on cryptocurrency theft to fund illicit activities, such as their weapons programs.
The DPRK’s crypto attacks in 2024 were characterized by increasing frequency and sophistication, with a particular focus on smaller-scale attacks around $10,000. State-sponsored actors from North Korea leveraged sophisticated techniques like social engineering and remote work exploitation to target crypto and Web3 companies throughout the year, with a peak in activity early on and a decline in later quarters.
Following a summit with Russia in June 2024, DPRK cybercriminal activity significantly decreased, potentially indicating a shift in resources towards the Ukraine conflict. In the wake of the DMM Bitcoin exploit, which forced the exchange to shut down, it became evident that advanced security tools and predictive technologies were essential in combating future cyberattacks.
As the cryptocurrency industry faces a resurgence of theft in 2024, a collaborative approach between the public and private sectors is crucial. Data sharing, real-time security measures, advanced tracing capabilities, and targeted training are necessary to combat the evolving threats posed by cybercriminals. By prioritizing platform security, customer asset protection, and strong partnerships with law enforcement, the industry can build trust and stability in the digital ecosystem.
Overall, the challenges presented by the rise in cryptocurrency hacking incidents underscore the importance of proactive cybersecurity measures and a collective effort to safeguard the integrity of the crypto market. Vigilance, collaboration, and innovation will be essential in mitigating the risks and ensuring a more secure future for digital assets.