The cryptocurrency sector faced a significant challenge in 2024, with losses from hacking incidents surging 21% compared to last year, reaching a staggering $2.2 billion, according to a recent report by blockchain analysis firm Chainalysis.

A Rising Trend in Crypto Heists

This marks the fourth consecutive year where hacking-related losses exceeded the $1 billion mark, highlighting the growing sophistication of cybercriminals in the digital asset space. The number of reported incidents also rose to 303 in 2024, up from 282 in 2023, when hackers had stolen $1.8 billion.

The spike in these illicit activities coincides with a remarkable year for Bitcoin (BTC-USD), which surged 140% to cross the $100,000 milestone, driven by institutional interest and public endorsements, including support from U.S. President-elect Donald Trump.

“As the digital asset market booms, it is typical to see the illicit use of crypto grow in tandem,” remarked Eric Jardine, Cybercrimes Research Lead at Chainalysis. “Countering the proliferation of these crimes — especially fraud — will undoubtedly be a key challenge for the industry in the new year.”

Centralized Platforms: A Prime Target

The report highlighted that most of the stolen funds in 2024 resulted from compromises to private keys, which grant access to users’ digital assets. Centralized platforms were the primary targets of these breaches.

Some of the most significant incidents this year include:

• DMM Bitcoin: Japan-based crypto exchange lost $305 million in May.
• WazirX: Indian crypto platform faced a devastating loss of $235 million in July.

North Korea’s Growing Role in Crypto Hacks

A particularly alarming finding from the report is the dramatic increase in crypto hacking activity linked to North Korea. Funds stolen by entities tied to the nation doubled from 2023, reaching a record-high $1.3 billion in 2024.

The United Nations has previously stated that cryptocurrency helps North Korea circumvent international sanctions, though the country consistently denies any involvement in such cyber activities.

A Call for Industry Action

As the cryptocurrency market continues to expand, industry experts are urging enhanced security measures to safeguard users and platforms from cyber threats. “The rise in these heists underscores the urgent need for robust security frameworks and regulatory oversight,” said Jardine.

With 2025 on the horizon, countering crypto-related fraud and cybercrime will remain a top priority for the digital asset industry.

Key Takeaways:

• Crypto-related hacks surged 21% in 2024, with losses totaling $2.2 billion.
• Centralized platforms were the main targets of cybercriminals.
• North Korea-linked hacking activities hit a record $1.3 billion.
• Industry leaders stress the importance of stronger security measures as crypto adoption grows.

Stay updated with the latest developments in the cryptocurrency world as we continue to monitor this evolving landscape.