Bitrabo Editorial
The value of crypto hacks has soared to $1.6 billion in the first seven months of 2024, nearly doubling from the previous year, according to data from Chainalysis, a blockchain analytics firm.
Increase in Crypto Thefts
Although the number of hacks has only slightly risen from 145 in 2023 to 149 this year, the amount of stolen funds has significantly increased. This surge is largely attributed to the substantial price appreciation of crypto assets in 2024.
The introduction of spot Bitcoin exchange-traded funds (ETFs) in the US earlier this year led to a surge in Bitcoin’s value, peaking at nearly $74,000 by March. Despite recent market fluctuations, Bitcoin has seen a 38% increase in value this year and accounted for 40% of the total stolen funds in 2024.
The Asia-Pacific region has witnessed notable high-profile exploits, such as the $301 million loss by Japanese DMM Bitcoin and the $235 million drained from India’s WazirX, exposing vulnerabilities in centralized exchanges.
Centralized Exchanges as Key Targets
The report also highlighted North Korean-linked groups using advanced social engineering tactics to breach digital asset platforms. Authorities have linked North Korea to significant cryptocurrency thefts.
After a record $3.7 billion theft in 2022 and a decline to $1.7 billion in 2023, hackers are now focusing on centralized exchanges due to their vast cryptocurrency holdings and potentially weaker security measures compared to decentralized finance platforms.
As of the latest data, the crypto market capitalization stands at $2 trillion, recovering from a dip to $1.6 trillion in early August. Bitcoin is striving to reclaim $59,000 after dropping to $56,100, while Ethereum is trading just above its key support level of $2,600 after hitting a low of $2,500.
Image source: DALL-E, chart from TradingView.com