The Spookiest Crypto Moments This Year: From Hacks to Arrests and Market Dives

Though 2024 has seen some genuinely impressive developments that have helped boost crypto's recognition and acceptance, more than a few sudden scares showed up along for the ride, too.

This year has been a rollercoaster ride for crypto enthusiasts, with moments of exhilaration and trepidation alike. As we approach the end of 2024, let's take a look back at some of the scariest moments that gripped the crypto world and sent shivers down the spines of investors.

1. DMM Bitcoin Hack: In May, DMM Bitcoin, one of the largest centralized exchanges in Japan, fell victim to a devastating crypto hack. The perpetrator swiftly transferred 4502.9 BTC ($308 million) from the exchange, leaving investors reeling from the massive loss. The stolen funds were then dispersed into numerous different wallet addresses in increments of 500 BTC each to conceal their identity.

2. Pavel Durov Arrest: On August 24, Pavel Durov, the head of the popular messenger platform Telegram, was arrested at Le Bourget airport in France. Telegram is known for its use of encryption to protect user messages from third parties and unwanted onlookers.

Durov was charged with facilitating illegal activities and failing to report scammers to authorities. This news sent off an alarm across the crypto industry, as the privacy offered by Telegram is very similar to that found in cryptocurrency through cryptography.

3. Stock Market Dive: The second week of August started on a pretty sour note for crypto investors when it was announced that the global stock market had taken a sudden downturn. Numerous factors contributed to this, including a less-than-satisfactory U.S. job report, a hike in interest rates, Japan’s Nikkei 25 falling in value, and slow growth in the EU and China.

For a single day, the crypto community was thrown into a frenzy as prices began to plummet, accompanied by mass sell-offs. As the U.S. dollar began to weaken against other fiat currencies, stablecoin holders started to worry about the value and reliability of their tokens. Additionally, Bitcoin declined 8.5%, while Ethereum fell by a staggering 21.8% after the news broke.

4. WazirX Compromised: On July 18, India’s largest cryptocurrency exchange, WazirX, was hacked, supposedly by the prominent North Korean cyberhacking entity Lazarus Group. This highly sophisticated breach involved breaking into a multi-sig wallet by modifying the required signatures needed to open it and gain access to the funds inside.

5. Biden Vetoes Crypto Custody Bill: President Joe Biden took it upon himself to veto a crucial bill in May that would have allowed highly trusted financial institutions to custody Bitcoin and other cryptos. Biden made it clear early on in his presidency that he would take an anti-crypto stance, but this was an especially surprising and quite worrying development.

6. Ripple vs. SEC Approaches the Deadline: Speaking of the SEC and regulations, 2024 was intended to be the conclusion of the long running Ripple (XRP) vs SEC case with a planned deadline of October. While this has since been moved yet again to 2025, many investors were eagerly awaiting the results. Depending on who wins, the case itself will be instrumental in setting out the regulatory groundwork for crypto.

7. Bitcoin Halving: To ensure that Bitcoin doesn’t become inflated and lose its value, there is a Bitcoin halving every four years, which cuts the block rewards awarded to miners by half. By miners, I mean the individuals whose job is to verify incoming transactions entering the blockchain through a process known as mining in exchange for a few extra tokens.

8. Tether Investigation: Only a few days before people could enjoy the Halloween festivities, investors were given an early scare when the Wall Street Journal reported that Tether (USDT) was under investigation. Tether is a stablecoin pegged to the USD currently held by over 300 million investors, making it the most popular of its kind.