Cryptocurrency hacking incidents in 2024 surged 21.07% YoY to $2.2 billion, with 303 breaches reported, which marks the fifth year exceeding $1 billion in stolen funds, demonstrating a concerning correlation between crypto market growth and the scale of cyberattacks.
Crypto hacking activity experienced a significant surge in the first half of 2024, reaching $1.58 billion by July, surpassing 2023’s figures by 84.4%, which suggested a potential record-breaking year, comparable to 2021 and 2022.
The intensity of attacks decelerated markedly after July, resulting in a relatively stable loss trajectory for the remainder of the year.
Crypto hacks shifted from primarily targeting DeFi platforms in 2021-2023 to predominantly targeting centralized services in 2024, which coincides with a rise in private key compromises as the leading cause of crypto theft.
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The $305 million DMM Bitcoin hack, likely stemming from private key mismanagement, exemplifies the severe consequences of inadequate security measures in centralized exchanges.
Private key hackers in 2024 laundered stolen funds primarily through bridges and mixing services, while other hackers favored DEXs, whose distinction in laundering techniques highlights the evolving tactics employed by different types of crypto attackers.
North Korean hackers significantly escalated cryptocurrency theft in 2024, stealing $1.34 billion across 47 incidents, a 102.88% increase from 2023, which represents 61% of the total crypto stolen this year, demonstrating their continued reliance on cryptocurrency theft to fund illicit activities, including their weapons programs.
The DPRK’s crypto attacks are increasing in frequency and sophistication. While they continue to dominate large-scale exploits, a concerning trend emerges: a growing number of smaller-scale attacks, particularly around $10,000.
North Korean state-sponsored actors, leveraging sophisticated TTPs like social engineering and exploiting remote work, infiltrated crypto and Web3 companies throughout the year, which primarily focused on data theft and extortion, peaked early in the year, with activity declining in later quarters.
Following a June 2024 summit with Russia, observed DPRK cybercriminal activity significantly decreased, potentially indicating a shift in resources towards the Ukraine conflict, which aligns with increased DPRK-Russia military cooperation.
In the DMM Bitcoin exploit, attackers transferred stolen funds through multiple intermediary addresses, culminating in their deposit into a Bitcoin CoinJoin mixing service, obscuring the origin of the illicitly acquired cryptocurrency.
According to Chainalysis, attackers laundered stolen funds through cryptocurrency bridges and deposited them into Huione Guarantee, an online marketplace linked to a known cybercrime facilitator.
This breach forced DMM Bitcoin to shut down and transfer its assets to SBI VC Trade, highlighting the need for preventative measures like advanced security tools and predictive technologies to combat future cyberattacks.
The resurgence of crypto theft in 2024 necessitates a multi-pronged approach, as collaborative efforts between the public and private sectors are crucial, leveraging data sharing, real-time security, advanced tracing, and targeted training to combat evolving threats.
As regulations tighten, the industry must prioritize platform security and customer asset protection, enhancing strong partnerships with law enforcement and investing in rapid response capabilities to build trust and stability in the digital ecosystem.
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