Funds stolen from cryptocurrency platforms by hackers surged by 21% in 2024, reaching a staggering $2.2 billion, according to a report from blockchain analysis firm Chainalysis. This marks the fourth consecutive year in which crypto heists have exceeded $1 billion, with the number of incidents rising to 303 from 282 in 2023. In comparison, hackers stole $1.8 billion last year.
Surge in Crypto Hack Incidents
The rise in hacking activity comes amid a significant increase in the value of bitcoin, which has jumped 140% this year, surpassing the $100,000 mark. This surge in value has attracted institutional participation and notable support, including backing from U.S. President-elect Donald Trump. As the digital asset market expands, the report highlights that illicit activities, including hacking and fraud, have also risen in tandem.
Majority of Hacks Target Centralized Platforms
The report indicates that compromises to private keys, which control access to users’ crypto assets, accounted for the majority of stolen funds. Most of the hacks targeted centralized platforms, which are particularly vulnerable to such attacks.
Among the most significant hacks were the theft of over $305 million from Japan’s DMM Bitcoin exchange in May and the loss of $235 million from India’s WazirX exchange in July.
North Korea’s Role in Crypto Hacks
One of the most concerning findings in the report is the dramatic increase in crypto hacking linked to North Korea, which more than doubled from 2023 to a record $1.3 billion in 2024. Chainalysis suggests that cryptocurrency is used by North Korea to circumvent international sanctions, though the country routinely denies any involvement in such cyber crimes.
Outlook for 2025
With the rise in crypto-related crimes, experts from Chainalysis warned that addressing fraud and other illicit activities will be a major challenge for the industry moving into the new year.