Crypto Hacks Almost Doubled to $1.6 Billion in First Seven Months of 2024: Chainalysis

While the value of stolen funds stolen has surged, the number of hacks rose only marginally to 149 so far this year, up from 145 in the corresponding period of 2023

The value of cryptocurrency hacks has surged to $1.6 billion in the first seven months of 2024, almost double the amount stolen during the same period last year, according to a report by blockchain analytics firm Chainalysis.

The increase in stolen funds is largely attributed to a rise in digital-asset prices, which have soared to record highs this year. However, the number of hacks has risen only marginally, with 149 reported so far in 2024 compared to 145 in the corresponding period of 2023.

“Many crypto asset prices have increased significantly in 2024 and a large part of the growth in value stolen is likely due to that price appreciation,” Eric Jardine, cybercrimes research lead at Chainalysis, told Bloomberg News in an email.

Bitcoin, which rose to a record of nearly $74,000 in March, has been a primary target for hackers. The cryptocurrency accounted for 40% of the proceeds from crypto heists this year, according to Chainalysis.

The debut of a crop of spot Bitcoin exchange-traded funds in the U.S. in January helped propel the digital asset to new heights. Bitcoin is still up 38% this year, despite a recent choppy period that erased some of the gains.

In 2022, a record $3.7 billion of crypto was stolen as hackers exploited weak security, particularly at decentralized finance (DeFi) outfits.

However, that number fell to $1.7 billion in 2023 as DeFi exchanges shored up security and token prices had yet to fully recover from a slump.

This year, several of the more eye-grabbing exploits have occurred in the Asia-Pacific region.

Japanese operator DMM Bitcoin lost $301 million in what was described as “an unauthorized leak,” while India's WazirX had $235 million drained, both in recent months. Both companies operate crypto exchanges in their respective markets.

“Crypto thieves seem to be returning to their roots and targeting centralized exchanges again after four years focused on their decentralized counterparts, which typically do not trade Bitcoin,” Chainalysis said in the report.

The report also highlights the increasing involvement of North Korean-linked groups in crypto heists, using sophisticated social engineering tactics to break into digital-asset platforms.

U.S. law enforcement authorities have previously linked North Korea to large-scale thefts of cryptocurrencies.