Crypto hacks wipe out $2.3B in 2024, marking 40% YoY surge

22 hours ago 4

According to Cyvers, the 40% yearly increase was driven mostly by growing access control vulnerabilities at centralized exchanges and cryptocurrency custodians.

Crypto hacks wipe out $2.3B in 2024, marking 40% YoY surge

Cryptocurrency hackers in 2024 surpassed the previous year’s achievements, stealing more than $2.3 billion worth of crypto from the Web3 ecosystem, a concerning sign for the industry’s mainstream acceptance.

Crypto hacks saw a sharp uptick, driven by the appeal of increasing cryptocurrency valuations after Bitcoin (BTC) surpassed the $100,000 mark for the first time on Dec. 6.

Crypto hackers stole over $2.3 billion worth of assets across 165 incidents, marking a 40% increase compared to 2023, when hackers stole $1.69 billion worth of crypto, according to a report shared by onchain security firm Cyvers.

The 40% increase was mainly attributed to the rise of access control breaches, particularly in centralized exchanges (CEXs) and crypto custodians, according to Deddy Lavid, co-founder and CEO of Cyvers.

Lavid told Cointelegraph:

“These incidents were often facilitated by compromised private keys and weak key management systems, exemplified by high-profile hacks such as multi-signature wallets…”

Despite the increase, the $2.36 billion was still 37% below the record $3.78 billion stolen in 2022.

Access control breaches resulted in $1.9 billion lost to crypto hacks

Access control vulnerabilities accounted for $1.9 billion worth of value stolen in 2024, or over 81% of the total amount lost to crypto hacks, across 67 cybersecurity incidents.

Smart-contract exploits resulted in $456 million stolen across 98 incidents, as the second-largest attack vector responsible for 19% of the value lost in 2024.

To avoid another multi-billion hacking year in 2025, the industry needs to prioritize more robust security practices, such as private key management with offline storage and real-time threat monitoring systems, according to Cyvers’ Lavid, who added:

“By prioritizing education, collaboration, and security innovation, we can significantly reduce these vulnerabilities and foster a safer Web3 ecosystem.”

North Korean hackers to start targeting Bitcoin ETFs in 2025: Cyvers

The industry must remain vigilant, as North Korean hackers may begin targeting larger objectives, such as the United States spot Bitcoin exchange-traded funds (ETFs), according to Michael Pearl, vice president of GTM strategy at onchain security company Cyvers.

Pearl told Cointelegraph in an exclusive interview:

“The FBI has issued a warning that North Korean hackers are going to try to infiltrate and steal money from ETFs. So, all those ETFs […] are storing the base Bitcoin somewhere. And you can be certain that somebody is already planning and thinking of how they're going to steal it.”