Cryptocurrency Theft Surge Hits Record $1.4 Billion in First Half of 2024

While offering a new frontier of financial possibilities, the cryptocurrency sector has also become a playground for cybercriminals.

In a year marked by unprecedented growth and volatility in the cryptocurrency market, hackers have been busier than ever.

In the first half of 2024 alone, a report by TRM reveals that the amount of cryptocurrency stolen by hackers has doubled, reaching a whopping $1.4 billion.

There is no doubt that blockchain technology offers strong security features, but it is not immune to sophisticated cyber attacks. Now, it seems that the anonymity and decentralization that make cryptocurrencies attractive also make them a lucrative target for hackers.

The Rise of Cryptocurrency Thefts

As the saying goes, “Numbers don’t lie.” Data from blockchain intelligence firm TRM shows that by June 24, 2024, the total amount stolen in crypto fraud has surpassed $1 billion, up from $657 million in the same period in 2023. This sharp increase is primarily attributed to a small number of large-scale attacks. In fact, just five major incidents accounted for a whopping 70% of the stolen funds.

Among these attacks, the largest of 2024 targeted Japanese Cryptocurrency Exchange DMM Bitcoin Led to the Theft of Over $300 Million in Bitcoin and more than 4,500 tokens, the report further stated. The cause of this massive attack remains unknown, but A bounty has been created, currently, on Arkham Intel Exchange to track down the culprits.

Other notable thefts include:

• THE Euler’s Financial Attack On March 13, 2023, the decentralized finance (DeFi) lender was the victim of a flash lending attack, resulting in the theft of nearly $200 million in cryptocurrency, including 96,833 Ethereum (ETH) and $34 million in U.S. dollar-pegged stablecoins.

• THE BitMart Exchange Hack on December 4, 2021, when hackers managed to steal approximately $150 million in assets from two of BitMart’s hot wallets, one hosted on the Ethereum blockchain and the other on the Binance Smart Chain.

Driving forces: rising prices and correlation with thefts

Several factors have contributed to this surge in cryptocurrency thefts. One of the main factors is the rising value of cryptocurrencies.

TRM Labs suggests that rising cryptocurrency prices are likely contributing to the increase in theft volumes.

As the prices of Bitcoin, Ether and other tokens have surged, so has the incentive for cybercriminals to target cryptocurrencies. Ari Redbord, global head of policy at TRM Labs, noted in a Reuters report: “While we haven’t seen any fundamental changes in the security of the cryptocurrency ecosystem, we have seen a significant increase in the value of various tokens compared to the same period last year.”

“Unauthorized Access” and How Hackers Operate

Hackers have employed a variety of methods to steal cryptocurrency. The most common technique involves gaining unauthorized access to private keys and seed codes (cryptographic strings of numbers that allow access to a crypto wallet). These keys are often targeted through phishing attacks, malware, and other forms of cyber intrusion.

While this year’s cryptocurrency thefts are substantial, they are still less than the nearly $2 billion stolen in the first half of 2022, which remains a record year for cryptocurrency thefts. At the time, cryptocurrency prices were soaring to record highs, much like the trend we’ve seen in 2024.

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