Crypto Platform Attacks Surge 21% This Year, Reaching $2.2 Billion
According to a report by Chainalysis dated December 19, the amount of funds stolen from cryptocurrency platforms due to cyberattacks has increased by 21% compared to last year, reaching $2.2 billion this year. This marks the fourth consecutive year that the total amount of attacks has exceeded $1 billion.
Chainalysis noted that the number of attacks increased from 282 to 303 this year. The amount stolen by hackers last year was estimated to be approximately $1.8 billion. This increase in cryptocurrencies coincided with Bitcoin surging by 140% this year, surpassing the $100,000 mark, alongside increased institutional participation and support from newly-elected President Donald Trump.
Large-scale attacks Eric Jardine, head of cybercrime research, stated that as the virtual asset market expands, it is typical to observe an increase in the illegal use of cryptocurrencies. He emphasized that one of the greatest challenges in combating the rise in crimes like fraud would be this issue.
According to the report, the theft of private keys that grant users access to their assets constituted a significant portion of stolen cryptocurrencies in 2024. Most attacks targeted centralized platforms. Among the most notable attacks of the year, $305 million was stolen from DMM Bitcoin exchange in Japan in May, and approximately $235 million was stolen from an exchange in India in July.
North Korea-related attacks Chainalysis reported that North Korea-related cryptocurrency hacks have more than doubled compared to last year, reaching record levels, with estimates around $1.3 billion this year. According to the United Nations, cryptocurrencies are helping North Korea circumvent international sanctions. North Korea consistently denies any involvement in cyber-attacks or cryptocurrency theft.
Last year, North Korea-based hackers stole approximately $660.50 million across 20 incidents. This year, they stole $1.34 billion in 47 incidents, indicating a growth of 102.88% in the value stolen. Data shows that 61% of the total amount stolen and around 20% of the total incidents occurred this year.
Security measures and international intervention Companies are advised to implement identity verification and background checks during hiring processes to ensure the security of private keys to mitigate risks. International intervention continues with increasing scrutiny. Cybersecurity firms, governments, and blockchain companies are working to monitor, identify, and counter these cyber threats. Led by the US, the Department of Justice has charged 14 North Koreans allegedly involved in a cyber theft conspiracy to support North Korea's weapons programs. The US State Department announced rewards for information leading to the disruption of these activities.
The decentralized nature of cryptocurrencies makes them both a target and a tool. North Korean hackers have demonstrated their ability to adapt tactics and objectives as security measures evolve. They continue their operations using methods such as mixers or tumblers to obscure the trace of stolen funds, moving assets across various wallets, and converting them into other cryptocurrencies or even traditional fiat currencies.
The implications of these cyberattacks extend beyond direct financial losses. They expose security vulnerabilities within the evolving cryptocurrency sector, raise questions about digital asset security, and highlight the geopolitical dimensions of cyber warfare. As cryptocurrencies gain mainstream acceptance, ensuring the security of these assets becomes vital for both investors and global economic stability.
In light of these developments, it has become essential for the cryptocurrency industry and its users to enhance security measures, adopt multi-signature wallets, conduct regular security audits, and raise awareness against phishing attempts. Efforts by the international community to counter these cyber threats continue, aimed at both punishing offenders and protecting the digital economy from future attacks.