Crypto Hacks Surpassed $1.6B in First Seven Months of 2024: Report

In a year marked by unprecedented growth and volatility in the cryptocurrency market, recent data shows that hackers have been busier than ever. 

According to blockchain analytics firm Chainalysis, the value of crypto hacks has doubled to a substantial amount of $1.6 billion in the first seven months of 2024. Notably, the increase was linked to the spike in the price of digital assets earlier this year. 

The Surge in Crypto Theft

The firm explained that although the value of stolen funds has increased, there has only been a slight increase in hacks this year, with 149 occurring so far compared to 145 during the same period in 2023.

Furthermore, several of the most notable exploits have affected the Asia-Pacific region this year. Among these significant attacks is the hack of the Japanese crypto exchange DMM Bitcoin and India’s WazirX. These incidents resulted in the loss of over $300 million and nearly $230 million respectively. 

“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,” the company said. 

Chainalysis also claimed that organizations with ties to North Korea, who have been implicated in some of the biggest cryptocurrency thefts, are using more advanced social engineering techniques to gain access to digital asset platforms.

Crypto Price Surge Attracting Hackers

A notable factor that contributed to this surge in crypto theft is the rising value of cryptocurrencies. For instance, Chainalysis estimated that 40% of the proceeds from this year’s cryptocurrency heists came from Bitcoin.

The price of bitcoin reached a record high of almost $74,000 in March fueled by the January launch of several spot Bitcoin exchange-traded funds in the U.S. Despite a recent period of volatility, the leading cryptocurrency has increased in value by 38% this year, per data from Bloomberg.

“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,” a researcher at Chainalysis said.