Crypto Hacks Resulted in Record Losses of $2.3 Billion in 2024, Representing a 40 Percent Year-Over-Year Increase

The world of cryptocurrency has seen its fair share of highs and lows in recent years, but the trend of hacking incidents continues to be a major concern for the industry. According to a report by onchain security firm Cyvers, hackers have stolen over $2.3 billion worth of crypto assets across 165 incidents in 2024, marking a staggering 40% increase compared to the previous year.

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A Rise in Access Control Breaches

The main contributor to this alarming figure was the rise of access control breaches, particularly in centralized exchanges (CEXs) and crypto custodians. Deddy Lavid, co-founder and CEO of Cyvers, attributed this trend to compromised private keys and weak key management systems.

A Closer Look at Access Control Breaches

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. This highlights the importance of robust security practices, such as private key management with offline storage and real-time threat monitoring systems.

Attack Vectors: A Breakdown

Access Control Breaches: $1.9 billion (81% of total losses)
Smart-Contract Exploits: $456 million (19% of total losses)

Cyvers’ Lavid emphasized the need for the industry to prioritize more robust security practices, including education, collaboration, and security innovation.

A Warning from Cyvers: Prioritize Security

"We can significantly reduce these vulnerabilities and foster a safer Web3 ecosystem by prioritizing education, collaboration, and security innovation," Lavid told Cointelegraph in an exclusive interview.

North Korean Hackers on the Rise: A New Threat Emerges

The industry must remain vigilant as North Korean hackers may begin targeting larger objectives, such as United States spot Bitcoin exchange-traded funds (ETFs), according to Michael Pearl, vice president of GTM strategy at Cyvers. The FBI has issued a warning that North Korean hackers are planning to infiltrate and steal money from ETFs.

The Future of Crypto Security: A Call to Action

As the industry continues to grow and evolve, it is essential to prioritize security measures to prevent such massive hacking incidents in the future. By adopting robust security practices and collaborating with experts, we can create a safer Web3 ecosystem for all stakeholders.

Key Takeaways

Cryptocurrency hackers stole over $2.3 billion worth of assets across 165 incidents in 2024.
Access control breaches accounted for $1.9 billion (81% of total losses).
Smart-contract exploits resulted in $456 million stolen (19% of total losses).
The industry must prioritize robust security practices, including education and collaboration.

A Safer Web3 Ecosystem: A Shared Responsibility

By working together to address the root causes of these hacking incidents, we can create a more secure environment for cryptocurrency investors and users. It is essential to remain vigilant and proactive in our approach to crypto security, lest we fall prey to the increasing threat of hacking.

Conclusion

The numbers are staggering, but it’s not all doom and gloom. By learning from these incidents and implementing robust security measures, we can build a safer Web3 ecosystem for all. The future of cryptocurrency is uncertain, but one thing is clear: security will be at the forefront of our collective efforts.

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