In the first half of 2024, cryptocurrency thefts have more than doubled compared to the same period in 2023, reaching $1.4 billion. This rise is driven by some large-scale hacks and the rise in crypto values.
Dramatic increase in cryptocurrency thefts
The value of cryptocurrencies stolen through hacks globally has more than doubled in the first six months of 2024, compared to the same period last year. According to blockchain researchers at TRM Labs, hackers stole more than $1.38 billion worth of cryptocurrency as of June 24, 2024, up from $657 million in the first half of 2023. The average theft amount also increased by one and a half times from the previous year.
Key factors behind the increase
Rising Cryptocurrency Prices and Motivations
Ari Redbord, global head of policy at TRM Labs, explained that while there have been no fundamental changes to the security of the cryptocurrency ecosystem, the value of several tokens such as Bitcoin, Ether, and Solana have increased significantly compared to last year. This increase in value has made cybercriminals more motivated to attack crypto services, leading to greater amounts of theft when they are successful.
Recovery from previous lows
Overall, cryptocurrency prices have recovered from the lows experienced in late 2022 following the collapse of Sam Bankman-Fried’s FTX exchange. Bitcoin, for example, reached an all-time high of $73,803.25 in March of this year.
Big hacks in 2024
One of the largest thefts this year involved approximately $308 million in Bitcoin stolen from Japanese crypto exchange DMM Bitcoin. The company described this incident as an “unauthorized leak.”
Comparison with previous years
Cryptocurrency companies are frequent targets of attacks, although losses of this magnitude are rare. In 2022, stolen cryptocurrency volumes were around $900 million, including more than $600 million stolen from a blockchain network linked to the Axie Infinity online game. The United States has attributed that theft to North Korean hackers.
International implications
The United Nations has accused North Korea of ​​using cyber attacks to fund its nuclear and missile programs, although North Korea has denied these accusations. The rise in cryptocurrency thefts this year highlights the current challenges in protecting digital assets against sophisticated cyber threats.
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