That year, 2024, was another tumultuous one for the cryptocurrency industry, with cyber criminals causing $2.2 bn worth of crypto platform losses, according to Chainalysis, a blockchain analytics firm.
It is up fifteen percent from $1.8 billion in 2023, which reflects the growing problem as digital assets become increasingly exposed.
Not only did the number of hacking incidents grow from 282 in 2023 to 303 in 2024, but they also continued to rise from 270 in 2018 to 298 in 2019. The increase from January through July is most pronounced: Video: More than $1.58 billion was stolen, up 84.4 percent from last year.
The first preview chapter for our 2025 Crypto Crime Report is for stolen funds. We look at crypto hacking trends in 2024, the DPRK’s activities, and more: https://t.co/1cu8druW84
— Chainalysis (@chainalysis) December 19, 2024
The trick was that theft happened much slower in the latter half of the year, suggesting that perhaps criminal tactics were starting to change.
Historically, DeFi platforms have also been the favorite targets of hackers as DeFi is growing fast and has, in many cases, colocated on less robust security protocols. DeFi platforms stole the most assets during the first quarter of 2024. In the second and third quarters, there was a shift of focus from decentralized to centralized platforms.
Some of the most significant centralized platform hacks included:
- DMM Bitcoin: $305 million stolen in May.
- WazirX: In July, criminals stole $234.9 million, including the part recovered.
Platform centralization is also threatened by undermining attacks, such as when private keys are compromised. Chainalysis cites this as the most vulnerable attack vector in 2024, accounting for 43.8 percent of all stolen cryptocurrency.
However, hackers’ growing attack strategies and ability to launder stolen funds are rising in tandem. Many of those private key cybercriminals used blockchain bridges and mixing services to obscure where they were sending those stolen assets, making it impossible for authorities to recover them.
Other hackers broke the ranks and laundered their illicit profits via decentralized exchanges.
Techniques for laundering money continue evolving, and efforts to enforce them have become difficult. This can also lead to even bigger hurdles in asset recovery and raise doubts about the functioning of the present regulatory measures.
Today, we announced that Chainalysis is acquiring Web3 security company Hexagate. Hexagate is a leader in crypto in real-time threat detection and mitigation across all blockchain networks.
Hexagate CEO Nuit Benov says its technology generated more than $1 billion worth of customer benefit by helping organizations react rapidly to potential risks. Coinbase and Consensys’ on-chain operations have been secured with Hexagate.
This acquisition is part of Chainasils’ broader efforts to make the blockchain safer and more secure throughout the industry.
It’s a wake-up call to how badly we need better security on centralized and decentralized platforms. As the cryptocurrency ecosystem develops, so do crimes against it.
Acquisition of Hexagate by Chainalysis and tweaks on the available security tools are good news, but the never-ending work of hackers in their various ways trying to make a buck is keeping the idea of crypto-related cybercrime ever before the industry.
