In 2024, blockchain research firm Chainalysis has reported that more than $2 billion worth of cryptocurrency has been stolen from crypto platforms. This marks the fifth consecutive year where thefts from such entities have surpassed $1 billion, with a significant 21% growth to reach $2.2 billion in 2024. The number of incidents also saw an increase, rising from 282 in 2023 to 303 in 2024.

Impacts and Real-World Consequences

Researchers noted that crypto platforms alone suffered losses of $1.5 billion between January and July, setting the industry on a path for $3 billion worth of thefts for the year. However, the number of attacks and the size of incidents significantly cooled midway through the year following high-profile losses. For instance, Japanese platform DMM Bitcoin suffered a $305 million hack in May, and Indian company WazirX lost nearly $235 million in July.These attacks had real-world implications. DMM Bitcoin was forced to shut down and sell off all its crypto assets to Japanese financial services giant SBI Group. Chainalysis tracked the stolen DMM funds as they were laundered through several different platforms and eventually cashed out on the notorious Cambodian financial platform Huione Guarantee, which has become a hub for Chinese organized crime and cyber scams.In November, Indian authorities arrested a man from West Bengal suspected of being behind the $235 million theft from WazirX.

North Korea Nexus

Chainalysis stated that hacking groups linked to North Korea's government continued to be the leading culprits in most crypto platform thefts in 2024, stealing $1.34 billion across 47 incidents. This is a significant increase from 2023 when $660.50 million was stolen in 20 attacks.North Korean hackers have gained a notorious reputation for their crypto heists, using these funds to circumvent international sanctions and fund their ballistic missiles programs. "Unfortunately, it appears that the DPRK's crypto attacks are becoming more frequent," the researchers said.Notably, attacks between $50 and $100 million and those above $100 million occurred far more frequently in 2024 than in 2023, suggesting that North Korea is getting better and faster at large-scale exploits. This contrasts with the previous two years when their exploits often yielded profits below $50 million.While North Korea has been associated with some of the biggest hacks based on the amount stolen, the country is also evolving to target smaller platforms. Chainalysis observed a growing density of North Korean attacks, particularly around $10,000 in value.There was a steep decline in North Korean group attacks after July, which Chainalysis attributed to a June summit between Russian President Vladimir Putin and North Korean leader Kim Jong Un. Since the summit, Russia has provided North Korea with money and weapons, and in return, North Korea is said to have sent its soldiers to fight in the Ukraine invasion. The amounts stolen by the DPRK dropped by approximately 53.73% after the summit, while non-DPRK amounts stolen rose by approximately 5%.The skill of North Korea's crypto hackers continues to amaze and perplex security experts. Last week, crypto platform Radiant Capital published a postmortem on a September incident where more than $50 million was stolen. The hackers, allegedly connected to North Korea's Reconnaissance General Bureau (RGB), used innovative tactics to corrupt devices used by Radiant Capital engineers.According to United Nations investigators, North Korea's government netted $3 billion from cryptocurrency platform attacks between 2017 and 2023.Get more insights with the Recorded FutureIntelligence Cloud.Learn more.