Crypto hacking incidents surged in 2024, with total funds stolen increasing by 21.07% year-over-year to $2.2 billion, according to a report by blockchain analytics firm Chainalysis.
The number of individual hacking incidents also rose from 282 in 2023 to 303 in 2024.
While the first half of the year saw a sharp rise in hacking activity, with $1.58 billion stolen by July—84.4% higher than the same period in 2023—the trend slowed significantly in the latter half of the year.
Chainalysis suggests geopolitical factors may have contributed to this shift.
The report highlighted a shift in the types of platforms targeted by hackers. In prior years, decentralized finance (DeFi) platforms were the primary victims, largely due to their rapid growth and underdeveloped security protocols.
“This shift in focus from DeFi to centralized services highlights the increasing importance of securing mechanisms commonly exploited in hacks, such as private keys. Private key compromises accounted for the largest share of stolen crypto in 2024, at 43.8%.,” Chainalysis stated in the report.
According to the report, North Korea-linked hacking groups were responsible for $1.34 billion in crypto theft across 47 incidents in 2024—a 102.88% increase in value stolen compared to $660.50 million across 20 incidents in 2023.
This represents 61% of the total funds stolen and 20% of the year’s incidents.
The U.S. Department of Justice recently indicted 14 North Korean nationals accused of working as remote IT contractors at U.S. firms, generating over $88 million by stealing proprietary information and extorting employers.
In October, Naijaonpoint reported that the United States government had made a move to tackle the menace caused by the dreaded and notorious Lazarus group with strong ties to North Korea.
The group is dreaded for its sophisticated means of operation and its history of breaching complex platforms with top-notch security systems.