$2.2 Billion Lost in 303 Crypto Hacks in 2024: Chainalysis Report

Crypto hacking reached new highs in 2024 with $2.2 billion stolen across 303 incidents according to the latest Chainalysis report.

21% more funds were stolen than in 2023, the industry is getting hacked.

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Shifting Targets: From DeFi to Centralized Platforms

Historically DeFi platforms were the target for hackers due to rapid growth and lack of security. But 2024 was different, Centralized platforms were the main target. Major breaches included DMM Bitcoin where $305 million was stolen and WazirX where $234.9 million was stolen.

43.8% of the thefts were private key compromises, so centralized platforms need to have robust security. In the case of DMM Bitcoin, poor private key management led to the exchange being shut down permanently. Hackers also laundered stolen funds through decentralized exchanges, mixers and bridging services to hide the transaction trail and evade detection.

North Korean Hackers Lead Crypto Heists

North Korean cybercriminals were the most active in 2024, responsible for 61% of the total funds stolen. They stole $1.34 billion from 47 incidents, more than double the $660.5 million stolen in 2023. They used social engineering, malware and advanced cyber tactics to breach platforms and steal big.

Their operations show the geopolitical risks in the crypto space. The stolen funds are used for illicit activities including weapons development so stakeholders need to take extra measures.

Solutions for a Safer Crypto Future

The crypto thefts show the industry needs to adapt to a more advanced threat landscape. Security experts recommend:

  • Better Security: Prioritize private key management and cold storage for centralized platforms.

  • Real-Time Monitoring: Use AI tools to detect and prevent big breaches.

  • Data-Sharing: Get exchanges, regulators and security firms to work together to trace and recover stolen funds.

  • Advanced Training: Train employees and stakeholders to identify phishing and other hacker tactics.

The Path Ahead

The rise in crypto theft, particularly from centralized platforms, highlights the evolving nature of cybercrime in digital assets. As hackers grow more sophisticated, the industry must double down on innovation to safeguard user funds and maintain investor trust.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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