Crypto Hacks Surge in 2024: A Year of Unprecedented Losses
In 2024, the cryptocurrency sector witnessed a significant increase in both the number and value of hacks compared to the previous year. A recent report indicates that the industry suffered losses exceeding $2 billion in the last 12 months, with over half of these funds allegedly stolen by hackers from North Korea.
Crypto Industry Faces $2.2 Billion in Hack-Related Losses
As the cryptocurrency market continues to expand, it simultaneously faces escalating threats from cybercriminals. This year marks the fourth consecutive year where the total value of assets stolen from crypto hacks exceeded a billion dollars, and it is the fifth such year overall. According to Chainalysis, 2024 saw a 21.07% year-over-year increase in hacks, with the total value stolen rising to $2.2 billion—$400 million more than 2023, making it the third-largest year for crypto thefts.
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Furthermore, 2024 recorded the highest number of individual hack incidents, reaching 303 by December, a 7% increase from 2023’s 282 attacks. The report notes a significant change in the trend midway through the year. The intensity of these attacks diminished after July, by which time the cumulative value stolen had reached $1.58 billion—an 84.4% increase compared to the same period in 2023.
Trends in Crypto Hacks Throughout 2024
Chainalysis analysts observed that the ecosystem seemed poised to match or exceed the $3 billion+ thefts of 2021 and 2022. However, the upward trend slowed significantly after July, stabilizing for the remainder of the year. Centralized exchanges (CEXs) were the most targeted platforms in Q2 and Q3, experiencing some of the largest breaches in the history of the industry. Notably, the DMM Bitcoin and WazirX hacks resulted in approximately $540 million in losses between May and July, with the former ranking as the third-largest crypto heist ever.
In the first quarter of 2024, decentralized finance (DeFi) platforms were the primary targets, continuing a trend seen in previous years. Private key compromises emerged as the most common method of attack, accounting for 43.8% of incidents. Hackers often used bridges and mixing services to launder stolen assets, while other attackers favored decentralized exchanges (DEXs).
North Korean Hackers Claim 60% of Stolen Crypto Funds
According to Chainalysis, hackers from the Democratic People’s Republic of Korea (DPRK) significantly increased their activities in 2024, stealing more from crypto platforms than in any previous year. The total value stolen by North Korean hackers surged by 102.88% from 2023, rising from $660.5 million to $1.34 billion. The number of incidents also increased from 20 to 47 in 2024, accounting for 20% of all incidents and 61% of the total value stolen.
This year, North Korean-linked crypto attacks have become more frequent and are yielding larger profits. Attacks valued between $50 million to $100 million were more common, suggesting that DPRK hackers are becoming more adept at executing substantial exploits. In the past two years, these hackers typically obtained less than $50 million per incident.
Analyzing DPRK’s Impact on Global Crypto Hacks
An analysis comparing DPRK’s activities to other hackers revealed that North Korean actors have consistently been responsible for most large-scale exploits over the last three years. Although their dominance in high-value hacks continued in 2024, there was also an increase in smaller-scale incidents, particularly around the $10,000 mark.
Chainalysis highlights that North Korean IT workers have increasingly infiltrated cryptocurrency and Web3 companies, compromising their networks and operations. However, most DPRK-related exploits occurred early in the year, with hacking activity slowing significantly in the third and fourth quarters. To mitigate these threats, the report recommends prioritizing comprehensive employment due diligence while maintaining robust private key management to protect critical assets.
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