The 2024 Chainalysis cryptocrime report showed that North Korean hackers were responsible for more than 60% of stolen cryptocurrency.
Hackers stole $2.2 billion in 2024
Crypto hacking remains a serious problem for the crypto ecosystem. A Chainalies report said that 303 hacking incidents occurred in 2024, resulting in $2.2 billion lost by hackers. This follows an alarming trend in 2018, 2021, 2022, and 2023, when at least $1.5 billion worth of cryptocurrency was stolen. 2024 will be the fifth time this milestone has been reached.
The amount of cryptocurrency stolen in 2024 increased by 21.07% year-on-year, with 303 hacker attacks compared to 282 in 2023. Interestingly, most hacker attacks occurred between January and July 2024, with $58 billion stolen in one incident. In recent years, decentralized finance (DeFi) platforms have been the primary target of cryptocurrency hacks, as founders tend to favor rapid expansion over security. However, 2024 saw a systemic shift, with centralized platforms being targeted significantly. The most notable hacks of centralized platforms include DMM Bitcoin, where $305 million was lost, and WazirX, where hackers stole $234.9 million.
The shift in strategy by hackers from DeFi to centralized services highlights the importance of protecting hacker-friendly mechanisms such as private keys. In 2024, private key compromises accounted for 43.8% of all cryptocurrency thefts. Because centralized exchanges manage large amounts of user funds, the impact of an attempted private key breach can be devastating, as demonstrated by the $305 million DMM Bitcoin hack, which occurred due to private key mismanagement and potentially resulted in the permanent suspension of stock exchange operations.
To obscure the trail of transactions and make them more difficult to track, hackers often launder stolen assets through decentralized exchanges (Dexe), mining services, or mixing/bridging services.
North Korean hackers are notorious for their sophisticated and relentless tactics, often using social engineering and sophisticated malware to steal millions of dollars.
This is evident from the fact that North Korean hackers stole $1.34 billion across 47 incidents in 2024, up 102.88% from the $660.5 million stolen across 20 incidents in 2023. The total amount of funds stolen by North Korean hackers represents 20% of all incidents and 61% of the total amount stolen annually. The rise in cryptocurrency thefts in 2024 highlights how the sector must adapt to a changing and more complex threat environment. In addition to the increased resilience required to protect crypto assets, data sharing programs, real-time security solutions, advanced tracking tools, and targeted training can help stakeholders quickly identify and eliminate hackers and prevent major losses.
