Crypto hacking incidents surged in 2024, with total funds stolen increasing by 21.07% year-over-year to $2.2 billion, according to a report by blockchain analytics firm Chainalysis.
The number of individual hacking incidents also rose from 282 in 2023 to 303 in 2024.
While the first half of the year saw a sharp rise in hacking activity, with $1.58 billion stolen by July—84.4% higher than the same period in 2023—the trend slowed significantly in the latter half of the year.
Chainalysis suggests geopolitical factors may have contributed to this shift.
Shift in hacking targets
The report highlighted a shift in the types of platforms targeted by hackers. In prior years, decentralized finance (DeFi) platforms were the primary victims, largely due to their rapid growth and underdeveloped security protocols.
- However, in 2024, centralized services were the main targets in the second and third quarters.
- The report noted significant breaches recorded in the year which include $305 million stolen from DMM Bitcoin in May 2024, and the $234.9 million stolen from WazirX in July.
- Private key compromises emerged as the most exploited vulnerability, accounting for 43.8% of stolen funds.
- Hackers used advanced laundering techniques, funneling stolen crypto through decentralized exchanges (DEXs), bridges, and mixing services to obscure transaction trails.
“This shift in focus from DeFi to centralized services highlights the increasing importance of securing mechanisms commonly exploited in hacks, such as private keys. Private key compromises accounted for the largest share of stolen crypto in 2024, at 43.8%.,” Chainalysis stated in the report.
North Korea’s rising role in crypto hacks
According to the report, North Korea-linked hacking groups were responsible for $1.34 billion in crypto theft across 47 incidents in 2024—a 102.88% increase in value stolen compared to $660.50 million across 20 incidents in 2023.
This represents 61% of the total funds stolen and 20% of the year’s incidents.
- North Korea’s state-sponsored hacking activities often fund weapons development programs and circumvent international sanctions.
- The report noted an increase in both the frequency and scale of these attacks, with more exploits exceeding $100 million in value.
- The report also uncovered sophisticated tactics employed by North Korean operatives, including the infiltration of crypto and Web3 companies.
- Using false identities, third-party intermediaries, and remote work opportunities, North Korean IT workers compromised networks and operations.
The U.S. Department of Justice recently indicted 14 North Korean nationals accused of working as remote IT contractors at U.S. firms, generating over $88 million by stealing proprietary information and extorting employers.
What you should know
In October, Nairametrics reported that the United States government had made a move to tackle the menace caused by the dreaded and notorious Lazarus group with strong ties to North Korea.
- The US government filed two legal complaints on Oct 4 seeking to seize about $2.67 million worth of crypto assets stolen by the North Korean Lazarus group of hackers.
- The filing revealed that the US government seeks to recover about 1.7 million in Tether which was stolen by the hackers in a 2022 exploit of the Deribit platform draining the options exchange platform of $28 million.
- The North Korean-linked Lazarus group is a notorious entity of highly advanced hackers who are responsible for most of the biggest exploits in the crypto industry.
The group is dreaded for its sophisticated means of operation and its history of breaching complex platforms with top-notch security systems.