Crypto Hacks Surge to $2.2 Billion in Losses in 2024, According to Report – One America News Network
December 19, 2024 – 7:41 AM PST
(Reuters) – According to a report released by blockchain analysis firm Chainalysis on Thursday, cryptocurrency platforms have experienced a surge in stolen funds due to hacking, with losses rising 21% year-over-year to a total of $2.2 billion in 2024.
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This marks the fourth consecutive year that hacking losses have exceeded $1 billion, with reported incidents increasing to 303 from 282 in 2023, where hackers stole $1.8 billion.
The uptick in crypto-related heists coincides with a remarkable rise in bitcoin (BTC=), which has surged 140% this year, surpassing the $100,000 threshold, thereby attracting institutional interest and support from U.S. President-elect Donald Trump.
“Typically, as the digital asset market flourishes, there is an accompanying rise in the illicit usage of cryptocurrency,” noted Eric Jardine, the cybercrimes research lead at Chainalysis.
“Addressing the escalation of these offenses — particularly fraud — will undoubtedly present a significant challenge for the industry in the coming year.”
According to the report, compromises to private keys, which provide access to users’ assets, accounted for the majority of the stolen cryptocurrency this year, with the majority of attacks targeting centralized platforms.
Some of the most notable hacks include the theft of over $305 million from Japan’s DMM Bitcoin exchange in May and the loss of $235 million from India’s WazirX in July.
Chainalysis also reported that cryptocurrency hacking linked to North Korea more than doubled from the previous year, reaching a record high of $1.3 billion in 2024.
The United Nations has indicated that cryptocurrency allows North Korea to circumvent international sanctions; however, the country routinely denies involvement in cyber hacking or cryptocurrency thefts.
Reporting by Medha Singh in Bengaluru; Editing by Arun Koyyur
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