Cryptocurrency platform hacks resulted in staggering losses of $2.2 billion in 2024, marking a 21% increase from the previous year, according to a new report by blockchain analysis firm Chainalysis.
The report reveals that crypto heists exceeded $1 billion for the fourth consecutive year, with the number of incidents rising to 303 from 282 in 2023. The surge in crypto theft coincides with bitcoin's remarkable rally, which saw the cryptocurrency surpass $100,000.
Private key compromises emerged as the primary method of attack, with hackers primarily targeting centralized platforms. Notable incidents include the $305 million theft from Japan's DMM Bitcoin exchange in May and a $235 million loss from India's WazirX platform in July.
North Korea-linked crypto hacking activities reached an all-time high of $1.3 billion in 2024, more than doubling from the previous year. The United Nations has noted that cryptocurrency enables North Korea to bypass international sanctions, though the country consistently denies involvement in cyber attacks.
"As the digital asset market booms, it is typical to see the illicit use of crypto grow in tandem," said Eric Jardine, Chainalysis' cybercrimes research lead. He emphasized that addressing these crimes, particularly fraud, will be a major industry challenge in the coming year.
The rise in crypto theft highlights growing security concerns in the rapidly evolving digital asset space, particularly as institutional investors increase their participation in the market.