Hackers Target Centralized Platforms as Crypto Market Grows
Funds stolen from cryptocurrency platforms reached a staggering $2.2 billion in 2024, marking a 21% increase from the previous year, according to a report by blockchain analysis firm Chainalysis. This represents the fourth consecutive year where crypto-related hacks surpassed $1 billion, with the number of incidents rising to 303 from 282 in 2023.
Hackers looted $1.8 billion in 2023, but 2024 saw an even greater escalation in crypto theft. The surge in cybercrimes coincides with Bitcoin’s meteoric rise of 140% this year, propelling its value past the $100,000 mark. This growth has drawn significant institutional interest and even support from US President-elect Donald Trump.
“As the digital asset market booms, it is typical to see the illicit use of crypto grow in tandem,” said Eric Jardine, Chainalysis’ cybercrimes research lead. “Countering the proliferation of these crimes, especially fraud, will undoubtedly be a key challenge for the industry in the new year.”
The report highlighted that the majority of stolen crypto stemmed from compromises to private keys, which provide access to users’ digital assets. Centralized platforms bore the brunt of these attacks, underscoring vulnerabilities within the ecosystem.
Two significant incidents this year included the theft of more than $305 million from Japan’s DMM Bitcoin in May and the $235 million loss from India’s WazirX in July. Both breaches spotlight the continued risk to centralized exchanges, which remain prime targets for cybercriminals.
Looking ahead, the report emphasized the urgent need for enhanced security measures within the cryptocurrency industry. As digital assets gain broader acceptance and attract greater investments, mitigating the risk of cyberattacks will be crucial in preserving trust and fostering long-term growth.
This alarming trend serves as a reminder of the importance of robust cybersecurity practices and highlights the challenges posed by the rapid expansion of the digital asset market.
