Crypto hacks surge: $2.2 billion stolen in 2024

Rising theft highlights urgent need for security upgrades across the booming cryptocurrency landscape.

In 2024 alone, up to $2.2 billion worth of cryptocurrency was stolen in hacks, according to a report released on Thursday by data analytics firm Chainalysis.

This alarming trend underscores the pressing need for stronger security measures as the crypto industry thrives, with Bitcoin recently surpassing the $100k mark and capturing global attention from retail investors, institutions, and governments alike.

This year’s crypto thefts—21.07% higher than last year—mark the fourth consecutive year where hackers have stolen over $1 billion. 

Chainalysis revealed that most hacks targeted decentralized finance (DeFi) platforms—blockchain-based financial applications. Developers’ focus on rapid growth over security has left these platforms highly vulnerable to attacks. 

The report highlighted that 43.8% of stolen crypto stemmed from private key compromises, which grant access to users’ funds. Once hackers obtained private keys, they employed sophisticated tactics, leveraging mining services, decentralized exchanges (DEXs), and mixing services to obscure their tracks and evade authorities.

North Korean hackers 

Chainalysis highlighted North Korean-linked hackers, who stole 102.88% more than last year.

In 47 incidents, these hackers stole up to $1.34 billion—accounting for 61% of all crypto thefts in 2024. Attacks valued between $50 million and $100 million, as well as those exceeding $100 million, increased significantly compared to last year.

This marks a shift from 2023, when most hacker profits were under $50 million, underscoring the growing skill and sophistication of these bad actors.

Some incidents were tied to North Korean IT workers who infiltrated companies. These workers often relied on third-party hiring intermediaries and false identities to gain access, compromising web3 and crypto networks from within.

A call for security 

These trends underscore the urgent need for stronger security measures in the crypto industry. Chainalysis stated, “The resurgence described above highlights gaps in existing security measures and the importance of adapting to new exploit methods.”

Addressing this crisis requires collaboration between the private and public sectors. “Data-sharing initiatives, advanced tracing tools, and targeted training can empower stakeholders to quickly identify and neutralize malicious actors while building the resilience needed to safeguard crypto assets,” Chainalysis noted.

Companies are urged to conduct thorough due diligence when hiring, including identity verification and background checks to mitigate insider threats.

Chainalysis also stresses the importance of private key hygiene to protect critical assets. “For centralized services, ensuring the security of private keys is critical, as they control access to users’ assets,” the firm explained.

Eric Jardine, Cybercrimes Research Lead at Chainalysis, said, “It's important to recognize that hackers are constantly adapting their techniques, making robust security practices non-negotiable across virtual asset and financial service providers. At a very minimum, investors should prioritize using multi-factor authentication (MFA), regularly update passwords, and store their private keys securely offline. Additionally, choosing exchanges or platforms with robust security protocols and insurance coverage can provide an extra layer of protection.” 

The crypto regulatory landscape continues to evolve as more countries establish frameworks and guidelines for the industry. This shift is expected to bring increased scrutiny on customer asset protection and platform security.

“By fostering stronger partnerships with law enforcement and equipping teams with the resources and expertise to respond rapidly, the crypto industry can reinforce its defenses against theft,” Chainalysis noted. “Such efforts are not only critical for protecting individuals, but also for building long-term trust and stability in the digital ecosystem.”