Crypto Hack Losses Mount to $2.2 Billion for the Year

The cost of identity theft and cryptocurrency account break-ins has skyrocketed for 2024, with losses accruing to $2.2 billion, according to Chainalysis.

Hackers are stealing billions in cryptocurrency.

The cost of crypto hacks has become much higher in recent years, and this marks the fourth straight year where those losses have exceeded $1 billion. Last year, about $1.8 billion in cryptocurrency was stolen, and we are seeing a spike in both the amount stolen and the number of hacking cases. In 2023, the number of known cases was 282, and in 2024, that number has climbed to 303.

What Is Causing Increased Theft?

There is a specific factor that analysts can point to as the reason for increased crypto thefts this year compared to last year. That would be the sky-high price of Bitcoin as Donald Trump won the US election. The BTC rate soared to record highs and shot past the $100K mark, prompting increased buying and selling that made it easier for hackers to steal identities and accounts. When trading increases, illegal activity can fly under the radar more easily, and when new traders enter the market, they may be susceptible to scams and may let personal information slip.

BTC/USD

Bitcoin rose 140% in 2024, prompting greater attention from thieves who took advantage of the rapidly growing market. New investors into cryptocurrency made for easy marks for unscrupulous scammers.

Eric Jardine, who leads cybercrime research for Chainalysis, said that illicit uses of cryptocurrency tends to grow as the digital asset trading increases. He believes that one of the top challenges in 2025 will be to find ways to guard against this kind of illegal behavior.

The biggest hacks occurred to crypto exchanges in India and Japan, with $235 million being taken from the WazirX exchange and $305 million from Japan’s DMM exchange. Many of the major hacks this year can trace back to North Korean agents, with some within the crypto currency industry accusing the North Korean government of promoting and sponsoring illegal hacks. The United Nations reported that 58 cyber attacks originated from the North Korean government, in fact.  

 

 

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ABOUT THE AUTHOR See More
Timothy St. John
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
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