As a seasoned analyst with over two decades of experience in the tech and finance sectors, I have witnessed the evolution of the digital economy from its infancy to its current maturity. However, it is disheartening to observe that the crypto industry’s growth has not been without its challenges, particularly when it comes to security breaches.
This year, we’ve seen an uptick in the amount of money stolen and the frequency of crypto hacks, as compared to last year. A recent study indicates that the crypto industry has suffered losses exceeding $2 billion in the past year alone, with roughly half of those funds reportedly being pilfered by hackers believed to be from North Korea.
Crypto Industry Loses $2.2 Billion To Hacks
With the expansion of the cryptocurrency sector, so too has the frequency and monetary impact of cyberattacks risen. In four consecutive years now, including 2024, the funds pilfered from these crypto hacks have surpassed the $1 billion threshold, making it the fifth year in a row to reach this significant milestone.
2024 data from Chainalysis shows a rise of 21.07% in hacking incidents compared to the previous year, amounting to a staggering $2.2 billion in stolen funds. This figure represents an increase of $400 million over the total value stolen in 2023 and ranks as the third-largest yearly haul on record.
As an analyst, I observed a significant trend in 2024. The year saw a staggering number of individual cyber-attacks, reaching a total of 303 incidents by December’s end. This figure marks a 7% surge from the 282 attacks witnessed in 2023. However, what truly caught my attention was a notable shift that occurred midway through 2024, as highlighted by Chainalysis.
Based on the findings, it appears that the frequency or severity of crypto hacks decreased following July. By this time in July, a total of $1.58 billion had been stolen since January, marking an increase of around 84.4% compared to the amount stolen during the same period in 2023.
According to Chainalysis analysts, it looked like the ecosystem was heading towards a year that could match or even surpass the record-breaking years of 2021 and 2022 with over $3 billion in value. However, by the end of July, the upward trend for 2024 noticeably decreased and remained fairly stable for the remainder of the year.
In the second and third quarters, centralized cryptocurrency exchanges (CEXs) were the primary focus of attacks, experiencing some of the biggest incidents ever recorded in the industry. The hacking of DMM Bitcoin and WazirX resulted in a combined loss of approximately $540 million between May and July. Notably, the DMM Bitcoin heist ranked third among the largest crypto thefts on record.
In the first quarter of this year, as well as in many quarters from 2021 to 2023, decentralized finance (DeFi) platforms held the highest percentage of stolen assets. On top of that, private key breaches were the most common type of compromise, making up approximately 43.8% of all incidents.
The report also noted private key hackers turned to bridges and mixing services to launder the ill-gotten funds, while hackers from other attack vectors preferred Decentralized Exchanges (DEXs).
North Korean Hacks Take 60% Of Stolen Funds
As per Chainalysis’ findings, hackers originating from the Democratic People’s Republic of Korea (DPRK) managed to swipe a greater amount from cryptocurrency platforms in the year 2024 than any other year. The total value stolen this year saw a significant surge of approximately 102.88%, rising from $660.5 million in 2023 to an astounding $1.34 billion in 2024.
As an analyst, I observed a significant increase in the number of incidents we encountered, rising from 20 incidents in the previous year to 47 in 2024. This accounts for approximately 20% of the total incidents reported this year. Interestingly, these incidents also represent around 61% of the total value stolen during this period. Furthermore, it seems that crypto attacks attributed to North Korean hackers are on the rise, with such attacks increasingly yielding substantial financial returns.
This year saw a higher frequency of cyber-attacks valued between $50 million and $100 million, as well as those exceeding this price range. This pattern seems to indicate that North Korea may be progressively enhancing its skills in executing large-scale cyber exploits at a faster pace, according to the report.
It’s important to mention that over the past two years, each instance of illicit activities by North Koreans resulted in less than $50 million in illegal funds.
Over the past three years, it’s evident that North Korea (DPRK) has been behind the majority of significant cyberattacks we’ve observed. Remarkably, in 2024, the DPRK maintained its position at the top of the large-scale hacking world. However, a growing number of smaller-scale hacks attributed to the DPRK have emerged, particularly those worth approximately $10,000 each.
According to Chainalysis, there’s been an escalating trend of North Korean tech professionals penetrating crypto and Web3 businesses, leading to breaches in networks, operations, and trust. However, they mention that most cyberattacks related to North Korea peaked at the start of the year, with hacking activities noticeably slowing down in Q3 and Q4.
In essence, the report recommended giving top priority to a comprehensive background check on employees, and at the same time, ensuring strict security measures for handling private keys to protect valuable resources, where necessary.
Read More
- SEI PREDICTION. SEI cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- ZIG PREDICTION. ZIG cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- ARB PREDICTION. ARB cryptocurrency
- XDC PREDICTION. XDC cryptocurrency
- KSM PREDICTION. KSM cryptocurrency
- DF PREDICTION. DF cryptocurrency
- NTRN PREDICTION. NTRN cryptocurrency
2024-12-21 16:12