Losses from Crypto Hacks Jumped to $2.2 Billion in 2024: Chainalysis

Funds stolen by hacking cryptocurrency platforms surged 21 percent from a year ago to $2.2 billion (roughly Rs. 18,710) in 2024, a report from blockchain analysis firm Chainalysis showed on Thursday.

The hacking amount exceeded $1 billion (roughly Rs. 8,502 crore) for the fourth straight year and the number of incidents rose to 303 from 282 in 2023, it said. Hackers had stolen $1.8 billion (roughly Rs. 15,302 crore) in 2023.

The rise in crypto heists comes as Bitcoin jumped 140 percent this year to surpass $100,000 (roughly Rs. 85 lakh) mark, drawing institutional participation and backing from US President-elect Donald Trump.

"As the digital asset market booms, it is typical to see the illicit use of crypto grow in tandem," Chainalysis' cybercrimes research lead Eric Jardine said.

"Countering the proliferation of these crimes — especially fraud — will undoubtedly be a key challenge for the industry in the new year."

Compromises to private key that controls access to users' assets accounted for the majority of stolen crypto this year with most of the attacks targeting centralised platforms, the report said.

Among the most notable hacks are the theft of more than $305 million (roughly Rs. 2,593 crore) from Japan's crypto exchange DMM Bitcoin in May and the loss of $235 million (roughly Rs. 1,997 crore) from India's WazirX in July.

Crypto hacking linked to North Korea more than doubled from a year ago to a record high of $1.3 billion (roughly Rs. 11,053 crore) in 2024, Chainalysis said.

Cryptocurrency allows North Korea to circumvent international sanctions, the United Nations has said. The country routinely denies involvement in cyber hacking or crypto heists.

© Thomson Reuters 2024

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