While the cryptocurrency market is experiencing an increase in adoption by mainstream consumers and a rise in its value, it also faces a harsh reality: significant losses caused by hacking.
Chainalysis, an analysis company that specializes in blockchain technology, has released a new report revealing that the amount of money stolen by crypto platforms will reach $2.2 billion dollars by 2024. This is a 21 percent increase over last year.
The alarming increase in cybercrime highlights the vulnerabilities of digital assets and sophisticated techniques used by hackers.
For the fourth consecutive year, crypto hacks have exceeded $1 billion
The industry has been plagued by a worrying trend for the past four years. Losses from hacks of crypto currencies have exceeded $1 billion. Hacking incidents increased to 303 by 2024 from 282 at the end of 2023.
Hackers stole $1.8 billion from 2023 to date.
This increase in volume and frequency indicates that we need to improve security protocols as well as implement robust countermeasures.
Bitcoin and its dark side
Crypto hacking has increased as Bitcoin (BTC USD) saw a 140% increase this year, surpassing $100,000. This led to greater participation from institutions and even the support of US President elect Donald Trump.
According to Eric Jardine of Chainalysis, the cybercrimes lead at the company, the illegal use of cryptocurrency is expected to grow along with the growth in the digital assets market.
The industry faces a significant challenge in protecting digital assets amid rapid growth.
Jardine suggests, “Confronting these crimes — particularly fraud — will be undoubtedly a major challenge for industry in the New Year.”
Private key compromises
According to the Chainalysis report, compromises of private keys that control users’ assets accounted for most crypto thefts this year.
These attacks mainly targeted centralized platforms and highlighted the inherent risks of such exchanges.
The theft of more than $305 million by Japan’s DMM Bitcoin crypto exchange in May and the loss $235 million at India’s WazirX, in July were two of the notable incidents.
The current infrastructure is vulnerable to a number of attacks.
North Korea’s increasing role in cyber hacking
Report also highlights a troubling trend in cryptocurrency hacking, linked to North Korea. This has more than doubled since the last year and will reach a new record of $1.3 billion by 2024.
Cybercrimes have geopolitical consequences, as this represents a large portion of total losses.
According to the United Nations, cryptocurrency is a way for North Korea’s government to bypass international sanctions.
North Korea denies its involvement in crypto-heists or cyber-hacking, but the data shows a link between illicit crypto activity and the country.
This article Crypto hacking loss will reach $2.2 billion by 2024 according to a recent report may be updated as new information becomes available
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