This year, cryptocurrency hacks have increased in terms of total value stolen and number of attacks compared to last year. According to a recent report, the industry has lost more than $2 billion in the past 12 months, with more than half of the money allegedly stolen by North Korean hackers.
Cryptocurrency industry loses $2.2 billion due to hacks
As the cryptocurrency industry grows, the number of hacks and the total value lost also increases. 2024 marks the fourth year in a row that funds stolen from cryptocurrency hacks have surpassed the $1 billion mark and the fifth year overall to exceed that number.
Latest series analysis a report It revealed that hacking operations continued in 2024, with an increase of 21.07% year-on-year. The total value stolen rose to $2.2 billion, $400 million more than in 2023 and the third-largest year by this measure.
Furthermore, 2024 became the year with the highest number of individual hacks, reaching 303 incidents by December. This number represents a 7% increase from the 282 attacks in 2023, but Chainalysis highlights a notable shift mid-year.
According to the report, the intensity of cryptocurrency hacks decreased after July, when the cumulative value stolen since January had already reached $1.58 billion. This number was approximately 84.4% higher than the value stolen during the same period in 2023.
Number of crypto hacks increase in 2024. Source: Chainalysis
Accordingly, Chainalysis analysts considered that “the ecosystem was easily on track for a year that could rival the $3 billion-plus in 2021 and 2022.” However, the 2024 uptrend slowed significantly by the end of July, and remained relatively flat for the rest of the year.
Central exchanges (CEXs) were the most targeted platforms in the second and third quarters, recording some of the largest incidents in the industry’s history. The DMM Bitcoin and WazirX hacks netted around $540 million between May and July, with the former being the third-largest cryptocurrency theft in history.
DeFi platforms accounted for the largest share of assets stolen in the first quarter, like most quarters between 2021 and 2023. Meanwhile, private principal settlements were the largest settlement type, accounting for 43.8% of incidents.
The report also noted that private key hackers turned to bridges and mixing services to launder illicit funds, while hackers from other attack vectors preferred decentralized exchanges (DEXs).
North Korean hackers seize 60% of the stolen money
According to Chainalysis, hackers from the Democratic People’s Republic of Korea (DPRK) stole more from cryptocurrency platforms in 2024 than in other years. This year, the total value stolen increased by 102.88% compared to 2023, rising from $660.5 million to $1.34 billion.
The number of accidents increased from 20 to 47 in 2024. These numbers represent 20% of the total accidents and 61% of the total value of stolen items this year. In addition, cryptocurrency attacks linked to North Korean hackers are becoming more frequent and generating greater profits.
The report adds that attacks worth $50 million to $100 million, and above that price range, were more frequent this year, “suggesting that North Korea is getting better and faster at large-scale exploits.”
It is worth noting that in the past two years, North Korean exploiters have received less than $50 million in illicit funds per incident:
When examining DPRK activity compared to all other hacks we measured, it is clear that over the past three years the DPRK has been consistently responsible for the most high-volume exploits. Interestingly, North Korea’s dominance at the top of the exploitation ladder continues into 2024, but there is also an increasing density of North Korean hacks of smaller amounts, most notably around $10,000 in value.
Chainalysis highlights that North Korean IT workers have increasingly infiltrated cryptocurrency and Web3 companies, compromising networks, operations, and integrity. However, it notes that most DPKR-related exploits occurred at the beginning of the year, with hacking activity generally stagnating in the third and fourth quarters.
Ultimately, the report suggested prioritizing “thorough hiring due diligence (…) while maintaining strong private key cleanliness to protect critical assets, if possible.”
Bitcoin's performance in the one-week chart. Source: BTCUSDT on TradingView
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