Crypto platforms around the world have lost a whopping $2.2 billion to hackers in 2024, 21.7% more than the amount lost in 2023Private key compromises account for almost half of the incidences of stolen funds, indicating a troubling growth in crypto security61% of stolen crypto came from hacking groups in North Korea and might be used to finance weapons of mass destruction
Crypto hackers stole $2.2 billion from crypto platforms in 2024. This is according to a new report released by Chainalysis, a blockchain Analytics firm.
According to the report, the figure is 21.7% higher than in 2023, showing that threats in the cryptocurrency industry have surged in the current year.
The report stated that almost half the stolen funds were accessed through private key compromises.
Photo credit – Photo Credit: Alistair Berg, George
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The report, released on December 19, showed a shift in primary targets from decentralized finance (DeFi) platforms to centralized finance platforms in 2023, although DeFi still accounted for the largest share of stolen assets.
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This implies that cybercriminals are upgrading their tactics to discover and exploit loopholes in more traditional centralized finance platforms.
The biggest breaches in this regard led to DMM Bitcoin losing $305 million to these criminals in May 2024 and WazirX losing $234.9 million.
Hackers are switching things up
The Crypto Crime Report also showed that the year started with a sharp increase in hacking incidences and $1.58 billion stolen before July 2024, but the incidences reduced gradually in the second half of the year.
Much of the stolen funds remain untraced, as the hackers have learned advanced techniques that obscure their tracks.
The funds are thus transferred through a mix of services, including decentralized exchanges (DEXs) and bridges.
Most importantly, almost half the stolen funds (43.8%) were accessed through private key compromises.
This implies that unauthorized persons obtain a private key and use it for unauthorized purposes. Chainalysis warned that private keys must be secured, as they are the most targeted loophole in such hacks.
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Over 25 million mobile phones stolen in Nigeria in one year
The report stated:
“This shift in focus from DeFi to centralized services highlights the increasing importance of securing mechanisms commonly exploited in hacks, such as private keys. Private key compromises accounted for the largest share of stolen crypto in 2024, at 43.8%. For centralized services, ensuring the security of private keys is critical, as they control access to users’ assets. Given that centralized exchanges manage substantial amounts of user funds, the impact of a private key compromise can be devastating;…”
An earlier Chainanalysis report had listed Nigeria amongst African countries with the highest cryptocurrency adoption with about 33% of the population holding crypto investments.
The most popular crypto asset among Nigerians is Bitcoin, which has had its best performance in recent months, breaking the $100,000 mark for the first time ever.
25 million mobile phones stolen in one year
Meanwhile, Henzodaily.ng earlier reported that over 25 million mobile phones were stolen in Nigeria from March 2023 to April 2024, and less than 10% of this number was reported to the police.
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The report, Crime Experience and Security Perception Survey 2024 reveals that about 25 million phones were reported stolen from an estimated 17.96 million Nigerians.
According to the NBS report, phone theft was the most common crime, with an estimated 17,965,741 victims, even though over 90% of the thefts went unreported due to a lack of trust in the police.
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Source: Henzodaily.ng