Losses from cryptocurrency platform hacks soared to US$2.2 billion (RM9.9 billion) in 2024, marking a 21% increase compared to the previous year, according to a report by blockchain analysis firm Chainalysis.
Key Highlights
Surge in Hacks and Stolen Funds
- Hacked funds surpassed US$1 billion for the fourth consecutive year.
- 303 incidents were reported in 2024, up from 282 in 2023, when US$1.8 billion was stolen.
Factors Behind the Rise
- The surge coincided with bitcoin’s 140% rise, surpassing the US$100,000 mark this year, attracting institutional investors and increased market activity.
- Compromises to private keys controlling user assets were the primary method of theft, with centralized platforms as the main targets.
Notable Hacks in 2024
- DMM Bitcoin (Japan): Over US$305 million stolen in May.
- WazirX (India): Lost US$235 million in July.
North Korea's Record Involvement
- Hacks linked to North Korea more than doubled, reaching a record US$1.3 billion in stolen funds.
- The United Nations has previously reported that cryptocurrencies enable North Korea to circumvent sanctions, though the country denies involvement in such activities.
Industry Challenges
"As the digital asset market booms, it is typical to see the illicit use of crypto grow in tandem," said Eric Jardine, Chainalysis’ cybercrimes research lead.
- He emphasized the growing importance of addressing these crimes, especially fraud, as a critical challenge for 2025.
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