Cryptocurrency Theft Spikes in Early 2024, North Korea-Linked Hackers Responsible for 61% of Losses

Cryptocurrency theft rose sharply in 2024, with total losses reaching $2.2 billion, a 21% increase from 2023.

Cryptocurrency theft reached new heights in 2024, with total losses amounting to $2.2 billion, marking a 21% increase from the previous year, according to a report by Chainalysis. North Korea-linked hackers played a major role in these thefts, siphoning off $1.34 billion across 47 separate incidents, which constituted 61% of the total cryptocurrency heists.

These findings come on the heels of an earlier revelation by the United Nations Security Council, which stated that North Korean hackers had managed to pilfer $3 billion in cryptocurrency between 2017 and 2023. The latest data serves to further emphasize the ongoing threat posed by these hacking groups.

Crypto Hacks Surged In Early 2024

As per the report, hackers managed to steal $1.58 billion in cryptocurrency between January and July of 2024, which represented an 84.4% increase when compared to the same period in 2023. Interestingly, the rate of hacking incidents dropped significantly after July.

Chainalysis linked this decline to North Korea’s alliance with Russia. Following a June summit between Kim Jong Un and Vladimir Putin, the amount stolen by North Korea-linked hackers decreased by 53.73%. The report also highlighted a potential shift in North Korea’s cybercrime tactics after the meeting.

DeFi Platforms And Centralized Services Faced The Brunt Of Attacks

Decentralized finance (DeFi) platforms continued to be the primary targets for cryptocurrency theft in early 2024, accounting for the highest value of stolen assets during Q1. However, the focus shifted to centralized services in Q2 and Q3.

Among the notable breaches in 2024 were the theft of 48 billion yen ($305 million) from Japanese exchange DMM Bitcoin and a security incident on Indian exchange WazirX that led to halted withdrawals in July. Both incidents involved North Korea-linked hackers.

Cryptocurrency Thefts Over The Years

Over the past decade, cryptocurrency theft has been a recurring issue, with four separate years witnessing losses exceeding $1 billion. Some of the significant years include 2018 ($1.5 billion), 2021 ($3.3 billion), 2022 ($3.7 billion), and 2023 ($1.8 billion).

The Chainalysis report serves to highlight the evolving tactics employed by cybercriminals and underscores the need for enhanced security measures across the cryptocurrency industry. The data also sheds light on the persistent risk faced by crypto platforms and users throughout the world.