Alongside the rising adoption and worth of crypto belongings, theft can also be on the rise. This 12 months, the full worth of cryptocurrency stolen surged 21%, reaching a considerable $2.2 billion. And in response to a Chainalysis report launched on Thursday, greater than half of this quantity was stolen by North Korea-affiliated hacking teams.
Earlier this 12 months, the United Nations Security Council said that North Korean hackers stole $3 billion in cryptocurrency belongings between 2017 and 2023. In 2024, hackers linked to North Korea accounted for 61% of the full quantity stolen — value $1.34 billion, in 47 instances, per the report by Chainalysis.
Geopolitics within the image
The report highlighted that almost all crypto hacks occurred between January and July this 12 months, however the quantity stolen had already exceeded $1.58 billion, round 84.4% greater than the identical interval in 2023.
Following July, nonetheless, hacking occasions grew to become considerably rare, doubtlessly resulting from geopolitics. Chainalysis attributes it to North Korea’s alliance with Russia, which emerged after a meeting between Vladimir Putin, the Russian president, and Kim Jong Un, the chief of North Korea, in June.
The quantity of crypto belongings stolen by North Korea-linked hackers dropped by 53.73% after the June summit, per Chainalysis. North Korea, which has elevated its cooperation with Russia, might need switched up its cybercrime ways, the report says.
Victims want stronger safety
Crypto hacking continues to pose a relentless risk, with over a billion {dollars}’ value of crypto being hacked in 4 separate years inside the previous decade — 2018 ($1.5 billion), 2021 ($3.3 billion), 2022 ($3.7 billion), and 2023 ($1.8 billion).
Decentralized finance (DeFi) platforms that don’t implement proper security practices have been the first targets of cryptocurrency hacks within the final three years, and accounted for the best quantity of stolen belongings in Q1 2024. Nonetheless, between Q2 and Q3 2024, centralized companies have been the primary goal of assaults.
Just a few notable instances of centralized companies that have been attacked in 2024 embrace DMM Bitcoin, a Japanese crypto exchange that misplaced $305 million (48 billion yen) in bitcoin, and WazirX, an Indian crypto exchange, which halted withdrawals in July after a security breach by North Korea-linked hackers.
