Cryptocurrency

Crypto Hacks Resulted in Wipeout of $2.3 Billion in 2024, Representing a 40 Percent Year-Over-Year Surge

A concerning trend has emerged in the Web3 ecosystem as cryptocurrency hackers surpassed the previous year’s achievements, stealing more than $2.3 billion worth of crypto assets in 2024. This sharp uptick is a worrying sign for the industry’s mainstream acceptance and highlights the need for robust security practices.

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Record-Breaking Hacks

According to a report shared by on-chain security firm Cyvers, cryptocurrency hackers stole over $2.3 billion worth of assets across 165 incidents in 2024. This represents a 40% increase compared to 2023, when hackers stole $1.69 billion worth of crypto.

Rise of Access Control Breaches

The 40% increase was mainly attributed to the rise of access control breaches, particularly at centralized exchanges (CEXs) and crypto custodians. Deddy Lavid, co-founder and CEO of Cyvers, explained that these incidents were often facilitated by compromised private keys and weak key management systems.

"These incidents were often facilitated by compromised private keys and weak key management systems," Lavid told Cointelegraph. "For example, high-profile hacks such as multi-signature wallets demonstrate the need for more robust security practices."

Access Control Vulnerabilities

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

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.

Prioritizing Security

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. Lavid emphasized:

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

North Korean Hackers Targeting ETFs

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 on-chain security company Cyvers.

"The FBI has issued a warning that North Korean hackers are going to try to infiltrate and steal money from ETFs," Pearl told Cointelegraph. "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."

Conclusion

The cryptocurrency industry has seen a significant increase in hacks in 2024, with over $2.3 billion worth of assets stolen across 165 incidents. Access control breaches and smart-contract exploits were the primary attack vectors responsible for the losses. To avoid another multi-billion hacking year in 2025, the industry needs to prioritize robust security practices, including private key management, offline storage, and real-time threat monitoring systems.

Recommendations

To mitigate the risks of crypto hacks:

Prioritize Private Key Management: Use secure methods for managing private keys, such as hardware wallets or multi-signature wallets.
Implement Offline Storage: Store assets in cold storage to prevent access by unauthorized individuals.
Use Real-Time Threat Monitoring Systems: Utilize threat monitoring systems that can detect and respond to potential security threats in real-time.

By taking these measures, the industry can significantly reduce the risk of crypto hacks and foster a safer Web3 ecosystem.