Surge in Crypto Theft Hits Record High $1.4 Billion in First Half of 2024
While offering a new frontier of financial possibilities, the cryptocurrency industry has also become a playground for cybercriminals.
In a year marked by unprecedented growth and volatility in the cryptocurrency market, hackers have been busier than ever.
In the first half of 2024 alone, a TRM report reveals that the amount of crypto stolen by hackers has doubled to a large tune of $1.4 billion.
No doubt that blockchain technology offers robust security features, but it’s equally not impervious to sophisticated cyber-attacks. Now, it seems that the anonymity and decentralization that make cryptocurrencies attractive also make them a lucrative target for hackers.
The Surge in Crypto Theft
As the saying goes, “Numbers don’t lie.” Data from blockchain intelligence firm TRM shows that by June 24, 2024, the total amount stolen in crypto frauds surpassed the billion-dollar mark, compared to $657 million during the same period in 2023. This sharp increase is primarily attributed to a small number of large-scale attacks. In fact, just five major incidents accounted for a massive 70% of the stolen funds.
Among these attacks, the largest one in 2024 targeted Japanese crypto exchange DMM Bitcoin, resulting in the theft of over $300 million worth of Bitcoin and more than 4,500 tokens, the report further stated. The cause of this massive attack remains unknown, but a bounty has been created, currently, on Arkham Intel Exchange to fish out the perpetrators.
Other notable heists include:
- The Euler Finance Attack on March 13, 2023, the decentralized finance (DeFi) lender that fell victim to a flash loan attack, resulting in the theft of nearly $200 million worth of crypto assets, including 96,833 Ethereum (ETH) and $34 million worth of the USD-pegged stablecoin.
- The BitMart Exchange Hack on December 4, 2021, where hackers managed to steal approximately $150 million worth of assets from two of BitMart’s hot wallets, one hosted on the Ethereum blockchain and the other on the Binance Smart Chain.
The Driving Forces: Price Surge and Theft Correlation
Several factors have contributed to this surge in crypto theft. One major driver is the rising value of cryptocurrencies.
TRM Labs suggests that higher crypto prices likely contribute to increased volumes of theft.
As the prices of Bitcoin, Ether, and other tokens have soared, so too has the incentive for cybercriminals to target crypto assets. Ari Redbord, global head of policy at TRM Labs, noted in a Reuters report, “While we have not seen any fundamental changes in the security of the cryptocurrency ecosystem, we have seen a significant increase in the value of various tokens compared to the same time last year.”
‘Unauthorized Access’ and How Hackers Operate
Hackers have employed a variety of methods to steal crypto assets. The most common technique involves gaining unauthorized access to private keys and seed codes (cryptographic strings of numbers that allow access to a crypto wallet). These keys are often targeted through phishing attacks, malware, and other forms of cyber intrusion.
While this year’s crypto thefts are substantial, they still fall short of the nearly $2 billion stolen in the first half of 2022, which remains the record year for crypto theft. Back then, crypto prices surged to record highs, much like the trend we’ve seen in 2024.
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