Key information
- Cryptocurrency thefts have exceeded $2.2 billion in losses for the fourth year in a row.
- The number of known hacking cases increased from 282 to 303, with a significant increase in stolen funds.
- Notable hacks have targeted cryptocurrency exchanges in India and Japan, many of which have been attributed to North Korean agents.
Cryptocurrency thefts: A growing concern
Cryptocurrency thefts surged in 2024, accumulating losses exceeding $2.2 billion, according to Chainalysis. This is the fourth consecutive year where these losses exceeded a billion dollars. The number of known hacking cases also increased, from 282 in 2023 to 303 in 2024, accompanied by an increase in the amounts stolen.
Factors contributing to the increase
A significant factor contributing to this surge is the substantial rise in the price of bitcoin following Donald Trump’s victory in the US elections. Bitcoin hit record highs, surpassing $100,000, leading to an increase in trading activity. This increased trading volume provided cover for illegal activity, making it easier for hackers to exploit vulnerabilities and steal identities and accounts.
Eric Jardine, head of cybercrime research at Chainalysis, believes that illicit use of cryptocurrencies tends to increase alongside the growth of digital asset trading. He predicts that combating this type of criminal behavior will be a major challenge in 2025.
Notable hacks and culprits
Notable hacks this year have targeted cryptocurrency exchanges in India and Japan. The WazirX exchange in India suffered losses of $235 million, while the DMM exchange in Japan suffered a loss of $305 million. Many high-profile hacks can be traced to North Korean agents, with some industry insiders accusing the North Korean government of orchestrating and supporting these illegal activities. The United Nations has reported 58 cyberattacks originating from the North Korean government.
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