According to a recent report from blockchain analysis firm Chainalysis, there has been a significant increase in funds stolen through hacking of cryptocurrency platforms. In 2024 alone, the amount surged by 21% compared to the previous year, reaching a staggering $2.2 billion. This marks the fourth consecutive year of hacking amounts exceeding $1 billion, with the number of incidents rising from 282 in 2023 to 303 in 2024. In 2023, hackers had stolen $1.8 billion.

Unraveling the Rising Tide of Cryptocurrency Hacking

Bitcoin's Boom and Its Impact on Crypto Hacking

As bitcoin BTC= witnessed a remarkable 140% jump this year, surging past the $100,000 mark, it has drawn significant institutional participation and even the backing of U.S. President-elect Donald Trump. This surge in the digital asset market has led to a simultaneous growth in the illicit use of crypto. "As the digital asset market booms, it is typical to see the illicit use of crypto grow in tandem," said Chainalysis' cybercrimes research lead Eric Jardine.More:As bitcoin soars, luxury brands consider accepting crypto paymentsHoliday deals: Shop this season’s top products and sales curated by our editors.The rise in crypto heists is a concerning trend that poses significant challenges for the industry. "Countering the proliferation of these crimes — especially fraud — will undoubtedly be a key challenge for the industry in the new year."

Major Crypto Hacks and Their Impact

Compromises to private keys that control access to users' assets have accounted for the majority of stolen crypto this year. Most of the attacks have targeted centralized platforms. Among the most notable hacks are the theft of more than $305 million from Japan's crypto exchange DMM Bitcoin in May and the loss of $235 million from India's WazirX in July. These incidents highlight the vulnerability of cryptocurrency platforms and the need for enhanced security measures.Crypto hacking linked to North Korea more than doubled from a year ago to a record high of $1.3 billion in 2024, as reported by Chainalysis. The United Nations has stated that cryptocurrency allows North Korea to circumvent international sanctions, while the country routinely denies any involvement in cyber hacking or crypto heists.Reporting by Medha Singh in Bengaluru; Editing by Arun Koyyur