Crypto Hacks in 2024: Centralized Exchanges Become Top Targets

The 2024 Chainalysis Crypto Crime Report reveals a concerning trend: cryptocurrency losses to hacks jumped to $2.2 billion, a 21% rise compared to 2023. This increase highlights ongoing vulnerabilities in the crypto world, with 303 theft cases in 2024 surpassing the 282 recorded in the previous year.

What makes these figures even more alarming is the growing sophistication of cybercriminals, leaving platforms and investors scrambling for answers.

How did hackers manage to pull off such large-scale thefts? Which platforms bore the brunt of these attacks, and what tactics are being used to evade detection? The report sheds light on these pressing questions, revealing the challenges that lie ahead for the industry.

Billion-Dollar Breaches Continue

For the fifth straight year, cryptocurrency theft has exceeded $1 billion annually. This trend shows the growing risks tied to the widespread adoption of digital assets. As cryptocurrencies gain mainstream appeal, they remain a prime target for cybercriminals, making robust security measures more critical than ever.

North Korea’s Role in Crypto Theft

A large portion of 2024’s stolen funds—$1.34 billion—was linked to North Korean hackers across 47 attacks. This is more than double the $660.5 million these actors stole in 2023. These heists accounted for 61% of all crypto thefts, showcasing North Korea’s advanced cyber techniques, often used to fund state activities like weapons development.

However, hacker activity from North Korea dropped by 53.7% after July 2024, likely influenced by geopolitical events such as the Putin–Kim Jong Un summit.

Key Targets Under Focus

In 2024, hackers shifted focus from decentralized finance (DeFi) platforms to centralized services, particularly during Q2 and Q3. This change marked a departure from previous years. Notable incidents included a $305 million attack on Japan’s DMM Bitcoin exchange and a $234.9 million theft from India’s WazirX.

One recurring issue was the poor management of private keys, which accounted for 43.8% of stolen funds. This common vulnerability emphasizes the need for improved key management practices across the industry.

Advanced Tactics You Should Know

Hackers are adopting increasingly sophisticated laundering techniques, such as leveraging blockchain bridges and mixing services to hide stolen funds. For instance, in the DMM Bitcoin attack, cybercriminals used mixers and multiple intermediary accounts to transfer money discreetly before reaching untraceable markets.

To counter these growing threats, the crypto industry must prioritize stronger security protocols, enhance private key protection, and collaborate with governments and private entities.

When it comes to cryptocurrency, the race to stay ahead of cybercriminals is one that the industry cannot afford to lose.