As a seasoned crypto investor with a decade-long journey through the digital asset landscape, I can’t help but feel a mix of excitement and concern upon reading this report about the escalating crypto hacks in 2024. On one hand, the industry’s growth is evident, with Bitcoin surpassing the $100,000 mark for the first time ever. However, on the other, it’s disheartening to see that the increased valuations have unfortunately attracted more nefarious actors into our space.
In simple terms, cybercriminals excelled beyond last year’s records, swiping approximately $2.3 billion in value from the digital ecosystem known as Web3. This significant theft raises concerns about the wider adoption of this industry.
2024 witnessed a significant increase in cryptocurrency breaches, fueled by the allure of escalating cryptocurrency values. This surge followed Bitcoin (BTC) breaking the $100,000 barrier for the initial time on December 6.
In the year 2024, crypto thieves managed to swipe approximately $2.3 billion in assets across 165 separate instances, representing a 40% jump compared to 2023 when they netted around $1.69 billion from stolen cryptocurrencies. This information was disclosed in a report by the onchain security firm Cyvers.
The significant jump of 40% can largely be traced back to a surge in unauthorized access incidents, most notably in centralized exchanges (CEXs) and cryptocurrency custody services, as reported by Deddy Lavid, the co-founder and CEO of Cyvers.
Lavid told CryptoMoon:
“These incidents were often facilitated by compromised private keys and weak key management systems, exemplified by high-profile hacks such as multi-signature wallets…”
Although there was a 40% rise over last year’s amount, the current $2.36 billion falls 37% short of the record $3.78 billion stolen in 2022.
Access control breaches resulted in $1.9B lost to crypto hacks
In 2024, approximately $1.9 billion was stolen due to access control vulnerabilities, representing around 81% of the total value lost from crypto hacks, distributed among 67 separate cybersecurity incidents.
Instead, it’s worth noting that smart contract exploits led to a staggering $456 million being taken during 98 separate instances in the year 2024. These incidents accounted for approximately 19% of the total value lost, making them the second most significant source of such losses that year.
In simpler terms, scams involving poisoned addresses were the third most frequently used method of cyber-attack, with these attacks resulting in cryptocurrency thieves making off with approximately $68.7 million.
In order to prevent another massive cyber-attack costing billions in 2025, it’s essential that the industry emphasizes stronger security measures. This includes securely managing private keys offline and implementing real-time threat detection systems, as suggested by Cyvers’ Lavid. He further stated:
“By prioritizing education, collaboration, and security innovation, we can significantly reduce these vulnerabilities and foster a safer Web3 ecosystem.”
North Korean hackers to start targeting Bitcoin ETFs in 2025: Cyvers
Yet, it’s crucial for the industry to stay alert, given the possibility that North Korean hackers could shift their focus towards more substantial targets, such as U.S. Bitcoin exchange-traded funds (ETFs), a concern raised by Michael Pearl, Vice President of GTM Strategy at Cyvers, a security company focused on blockchain technology.
Pearl told CryptoMoon in an exclusive interview:
“The FBI has issued a warning that North Korean hackers are going to try to infiltrate and steal money from ETFs. So, all those ETFs […] are storing the base Bitcoin somewhere. And you can be certain that somebody is already planning and thinking of how they’re going to steal it.”
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2024-12-24 12:59