The cryptocurrency crime landscape in 2024, saw a significant surge, with stolen funds increasing by approximately 21% year-on-year to $2.2 billion, according to a report by Chainalysis.
Funds stolen by hacking cryptocurrency platforms surged 21% from a year ago to $2.2 billion in 2024, a report from blockchain analysis firm Chainalysis showed on Thursday.
The hacking amount exceeded $1 billion for the fourth straight year and the number of incidents rose to 303 from 282 in 2023, it said. Hackers had stolen $1.8 billion in 2023.
The rise in crypto heists comes as bitcoin BTC= jumped 140% this year to surpass $100,000 mark, drawing institutional participation and backing from U.S. President-elect Donald Trump.
This surge highlights the growing sophistication of illicit activities targeting decentralized and centralized platforms, with new methods by bad actors reshaping the space.
Decentralized finance (DeFi) services bore the brunt of crypto theft in 2024, emerging as the most targeted during Q2 and Q3. The most significant vulnerability stemmed from private key compromises, which accounted for 43.8% of all stolen funds. North Korean hackers took center stage, stealing a record $1.34 billion – 61% of the year’s total. This unprecedented surge is partly linked to North Korean IT operatives infiltrating crypto and web3 companies, employing sophisticated tactics to compromise networks.
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Fraud and scams remained prolific, with high-yield investment schemes and “pig butchering” scams standing out as the most lucrative. The increasing use of artificial intelligence (Al) in cybercrime has been a notable trend, enabling highly personalized scams like extortion attacks and tools to bypass know-your-customer (KYC) requirements. Al’s role in crypto crime reflects broader trends in cybercriminal tactics, further complicating efforts to combat such activities.
Additionally, fraud operators are leveraging guarantee services such as Huione Guarantee to process illicit transactions. Meanwhile, crypto ATM scams, particularly targeting the elderly, have become an emerging concern, showcasing the diverse range of fraud tactics at play. Ransomware remained a major source of criminal revenue, generating hundreds of millions of dollars. However, coordinated international law enforcement operations and reduced victim willingness to pay ransoms have disrupted the ecosystem. While some ransomware groups continue to operate, their profits are declining due to decreased ransom amounts.
Transnational organized crime groups have increasingly leveraged cryptocurrency for a range of illegal activities, including drug trafficking, gambling, intellectual property theft, money laundering, human and wildlife trafficking, and violent crime. The rise of “polycrime,” where criminal networks engage in multiple types, is a defining trend. Of the $40.9 billion received by illicit crypto addresses in 2024, $10.8 billion went to wallets directly involved in or facilitating cybercrime.
As crypto crime continues to evolve, the ecosystem’s growing sophistication and scale present significant challenges for law enforcement and regulatory bodies. The interplay of high-tech innovations and professionalized platforms highlights the urgent need for global collaboration to address these threats.
Effective measures, such as advanced fraud detection, Al-based defenses, and regulatory oversight, will be critical in mitigating the impact of crypto crime in the years to come.