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Losses from Crypto Hacks Surge to $2.2 Billion in 2024, Report Shows

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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.

 

As Bitcoin Soars, Luxury Brands Consider Accepting Crypto Payments

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The recent surge in Bitcoin’s value has prompted luxury brands and retailers to explore cryptocurrency as a payment method, aiming to tap into the growing wealth of crypto investors and position themselves as innovative. While early adopters such as LVMH’s Hublot and Tag Heuer, along with Kering-owned Gucci and Balenciaga, have dabbled in crypto payments, the interest among high-end brands is accelerating.

One notable move came from French luxury department store Printemps, which partnered with Binance, the world’s largest crypto exchange, and French fintech firm Lyzi, to accept Bitcoin and Ethereum payments in its French locations. This step makes Printemps the first European department store to embrace cryptocurrency payments, a development generating significant interest from other brands.

“We’ve received numerous inquiries,” said David Princay, president of Binance France, noting ongoing talks with additional luxury labels. Similarly, S.T. Dupont, a maker of luxury lighters and pens, plans to roll out crypto payment options at two Paris locations before the holiday season.

Beyond fashion, the trend has extended into experiential luxury. For example, Virgin Voyages recently launched a $120,000 annual pass for its cruise ships, accepting Bitcoin as payment.

While cryptocurrencies’ high volatility and regulators’ warnings about their risks have been barriers to broader adoption, a more favorable regulatory environment under U.S. President-elect Donald Trump has bolstered confidence in digital currencies. Analysts from S&P suggest that blockchain innovation and greater financial market integration may enhance cryptocurrencies’ predictability, opening new opportunities for businesses.

Branding and Reaching Younger Clients

For luxury brands, embracing cryptocurrencies is as much about innovative branding as it is about new revenue streams. Digital assets can help brands shed their “stuffy” image and appeal to younger, tech-savvy clientele, said Andrew O’Neill, a digital assets analyst at S&P Global Ratings.

Notably, Balenciaga has released a luxury leather cardholder specifically designed to hold “Stax” hardware by crypto wallet company Ledger. The accessory, priced at €350 ($368), comes with an NFC chip and hardware storage for cryptocurrency. Ledger’s products range from $79 for the USB-style Nano wallet to $399 for its high-end Stax wallet.

Luxury conglomerates like Kering have also embraced a forward-looking approach. Gregory Boutte, Kering’s chief client and digital officer, described their strategy as “test and learn” rather than waiting for trends to mature. Gucci, Kering’s flagship brand, has been accepting 10 cryptocurrencies for purchases in the U.S. since 2022.

Expanding Markets and Evolving Preferences

Printemps plans to expand its crypto payment options to its upcoming New York City flagship store, set to open in March 2025 in the Wall Street district. Gucci and Tag Heuer were among the first brands to adopt crypto payments in the U.S. following Bitcoin’s surge in late 2021.

While some crypto investors appreciate the convenience of using digital currencies for luxury purchases, others remain indifferent to brand loyalty. Influencer and crypto investor Eunice Wong shared that she used cryptocurrency to buy several high-end watches, including an Audemars Piguet Royal Oak model. However, Wong prefers the secondary market over traditional retail, citing the speed and ease of purchase as her priorities.

Despite the challenges, luxury brands see crypto payments as a way to attract new customers, diversify revenue streams, and position themselves as leaders in innovation during a time of economic slowdown.

 

Exploring the Digital Assets Platform Under Discussion by the BRICS Group

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In October, Russian President Vladimir Putin confirmed that the BRICS nations (Brazil, Russia, India, China, and South Africa) are in the process of discussing a new digital currency platform to help reduce their dependence on Western financial systems. The move is aimed at lessening the influence of the US dollar in global trade and fostering greater financial independence among developing economies. Putin has voiced strong support for the initiative, suggesting that digital currencies could benefit not only BRICS members but also other emerging economies looking to diversify their financial tools.

The proposed platform, which may be called BRICS Pay, will be designed to enable member countries to conduct cross-border transactions more efficiently. According to reports, countries like Iran, Egypt, Ethiopia, and the UAE are also involved in the initiative, expanding the scope of the platform. The goal is to create a system that minimizes the reliance on traditional Western payment networks and promotes the use of digital assets, such as cryptocurrencies and Central Bank Digital Currencies (CBDCs), for international transactions.

The BRICS Pay platform would operate on a blockchain network, allowing for direct peer-to-peer transactions between member nations. One of the primary advantages of this system is that it would eliminate the need for brokers or intermediaries, streamlining the settlement process and reducing the costs associated with cross-border payments. In traditional international transactions, payment facilitators often charge high service fees, but using digital assets can bypass these intermediaries, resulting in lower costs for businesses and consumers alike.

This move aligns with the broader global trend of central banks and financial institutions exploring digital currencies as an alternative to traditional financial systems. While it remains to be seen how quickly BRICS Pay will be implemented, the development signals a significant shift in the financial landscape, with the potential to challenge the dominance of the US dollar and shift power towards a new, decentralized model of global trade and finance.