2024 was a remarkable year for the crypto industry, where Bitcoin surpassed the $100,000 mark, the market saw an uptick, and crypto adoption saw a surge across the globe, spurned by Donald Trump’s victory. The year was not without drama either, as major hacking incidents occurred throughout 2024 on some of the largest crypto exchanges/entities, with their far-reaching implications.
According to a report by Chainalysis, more than $2.2 billion was lost to hackers in 2024 through 303 hacking incidents, a 21.07% year-over-year increase in such incidents. . Additionally, individual hacking incidents increased from 282 in 2023 to 303 in 2024.
2024 is the fifth consecutive year in which the amount of stolen cryptocurrencies reaches one billion dollars (2018, 2021, 2022, 2023 and 2024). Hacking activity peaked at the start of the year, with $1.58 billion stolen in July, including the infamous WazirX hack, and this figure was 84.4% higher than the same period in 2023.
From 2021 to 2023, decentralized finance (DeFi) platforms have been the main targets of crypto hacks, due to the development and growth of the sector.
Additionally, the DeFi sector still holds the largest share of stolen assets in Q1 2024; a different trend was observed in the second and third trimesters.
Hackers targeted centralized services in 2024
In 2024, centralized exchanges and entities have become low-hanging fruit for hackers around the world. In centralized services, DMM Bitcoin and WazirX witnessed a major hack of $305 million and $234.9 million this year, which also raised concerns.
This tactical shift highlights a sophisticated understanding of vulnerability exploitation, with private key compromises accounting for 43.8% of all cryptocurrency thefts during the year. Hackers continue to employ sophisticated methods to hide the trail of stolen funds. Some common laundering techniques include decentralized exchanges (DEX), mixing services, and bridging services.
In 2024, North Korean hackers dominated
According to the Chainalysis report, in 2024, North Korean hackers are estimated to have stolen $1.34 billion in 47 incidents, a sharp increase from $660.5 million in 20 attacks in 2023. These hackers are known for their frequent and large-scale thefts of cryptocurrencies, often supported by the government. North Korean regime providing them with infrastructure and material support.
According to the researchers, these hackers are increasingly capable of stealing larger sums, with more frequent attacks in the range of $50 million to $100 million and more, and they are now turning more frequently to larger attacks. significant, exceeding $100 million.
Additionally, researchers find that the Democratic People’s Republic of Korea (DPRK) has become more common over the past three years. After tracking the DPRK’s activities, researchers found that they were behind most of the large-scale exploits over the past three years. Not only that, but there is also an increasing density of hacks in the DPRK for smaller amounts, worth around $10,000.
According to United Nations investigators, the North Korean government earned around $3 billion from attacks on cryptocurrency platforms between 2017 and 2023.
Read also: “Hackers are light years ahead,” says the vice-president of Cvyers Firm who founded WazirX Hack
Top 5 hacks of 2024
The increase in successful attacks has forced the crypto industry to ask serious questions about security protocols, particularly regarding private key management practices, real-time security monitoring systems, cross-platform data sharing, advanced tracing tools, etc. In 2024, the crypto space has witnessed major hacks which allow us to explore the major hacks.
1. $305 Million DMM Bitcoin Hack
The DMM Bitcoin hack was one of the biggest hacks in crypto history. In May 2024, DMM Bitcoin, a major Japanese cryptocurrency exchange, suffered the largest hack, resulting in a loss of approximately 4,502.9 Bitcoins, valued at the time at approximately $305 million.
This cyberattack was attributed to North Korean hackers, possibly linked to the Lazarus group, known for its sophisticated cybercriminal operations. After the theft, the stolen Bitcoin was laundered using a mixing service CoinJoin, which masks the origin of the funds by mixing them with others.
Hackers exploited vulnerabilities related to private key management, essential for securing access to user funds. Reports suggest that the breach could stem from poor security practices, such as inadequate encryption or improper storage of private keys.
In response to the attack, the exchange suspended its various services and restricted account activities. However, these actions were not enough to save the exchange as the repercussions of the crypto hack were severe. DMM Bitcoin struggled to recover from the incident and eventually decided to end its operations in December 2024.
The exchange announced plans to transfer its assets and customer accounts to SBI VC Trade, a subsidiary of the SBI Group, with this transition expected to be completed by March 2025.
2. WazirX’s $235 million breach
The WazirX hack was the second largest hack the crypto community witnessed this year. On July 18, 2024, WazirX, an Indian cryptocurrency exchange, witnessed a $235 million crypto hack (around 35,000 ETH and significant amounts of other tokens were stolen) from a multi-signature wallet.
Hackers exploited the vulnerability in WazirX’s multi-signature wallet, designed to require multiple approvals for transactions. This wallet uses a Gnosis Safe multisig setup in which 4 out of 6 keys are required for any transaction.
To break this security, the hackers deployed a malicious smart contract eight days before the attack, which allowed them to change the wallet configuration and bypass security. After the hack, the exchange suspended its various services and restricted trading activities. WazirX is facing backlash from its creditors for holding its remaining funds.
In November 2024, reports emerged that law enforcement agencies arrested an individual from West Bengal who allegedly sold his WazirX account details to hackers. The investigation continues as authorities work to locate and recover the stolen assets.
In December 2024, the exchange announced that cryptocurrency withdrawals were expected to resume by mid-April 2025.
3. $290 million PlayDapp exploit
PlayDapp, a crypto gaming and NFT platform, witnessed an exploit where hackers stole over 1.79 billion PLA tokens worth around $290 million. The incident involved two significant exploits that occurred on February 9 and 12. Attackers exploit vulnerabilities in smart contracts and compromised private keys, which allowed the hacker to add himself as an official coiner within PlayDapp’s smart contract.
After the initial breach, PlayDapp attempted to negotiate with the hacker by offering a $1 million “white hat” reward for the return of stolen assets. Negotiations failed as the hacker showed no willingness to cooperate. As a result, PlayDapp announced the suspension of the PLA smart contract on February 13.
4. Orbital Chain Hack
Orbit Chain, a South Korean blockchain platform designed for cross-chain interoperability, witnessed a crypto hack in early 2024, resulting in a loss of approximately $82 million to $100 million in cryptocurrencies.
Later, Orbit Chain announced that it was actively engaging with international law enforcement agencies to trace and recover stolen assets. The platform offered a reward of up to $8 million for information leading to the identification of attackers or the recovery of stolen funds.
According to reports on June 8, 2024, hackers moved 12,932 ETH, worth approximately $47.7 million, through Tornado Cash. The platform is working with South Korean law enforcement and international cybersecurity experts to investigate the breach. Experts say North Korean hacking groups could be involved in this case, as they are using methods similar to those seen in previous high-profile cryptocurrency thefts.
5. Exploitation of radiant capital
Radiant Capital, a leading DeFi project, witnessed a $58 million hack in October 2024. The attackers gained access to three of the platform’s private keys, which allowed them to steal assets from various networks such as Arbitrum, Binance Smart Chain, Base and Ethereum.
The attackers used sophisticated malware to compromise the devices of three trusted developers. This malware allowed them to manipulate transaction data displayed in the Gnosis Safe wallet interface in a similar way to the wazirX hack.
Subsequent investigations linked this attack to North Korean hackers, specifically a group known as Citrine Sleet (UNC4736). Radiant Capital has since worked with cybersecurity experts and law enforcement to recover the stolen funds and improve their security protocols.
Final Thoughts
The 2024 crypto hack data was shocking for the industry, marking the fifth consecutive year with losses exceeding $1.5 billion. As the crypto industry innovates and evolves, so do hackers who are now adapting to improved security features and even deploying quantum computing to steal money.
Furthermore, it is also concerning that these attackers are not acting individually, but are supported by powerful entities with immense power and resources. As 2025 approaches, the crypto industry needs to introspect on the current security arrangements and the need to implement robust security measures to maintain user confidence in the cryptocurrency space.
Also Read: Check Out Top 10 Crypto Journalists of 2024 Here
