Crypto Hacks Surged by 40% in 2024: Over $2.3 Billion Stolen | Airdrop Alert Pro

Cryptocurrency hacks and fraud caused more than $2.3 billion in losses this year, highlighting the persistence of cryptocurrency hacking and fraud Safety Industry vulnerabilities. This number involved 165 incidents, a 40% increase from the previous year.

While total losses are down from $3.7 billion in 2022, the continued increase in the number of attacks demonstrates that the industry’s defenses against advanced threats remain inadequate.

Ethereum and access control failures dominate losses

According to Cyvers’ annual report, access control breaches were the leading cause of losses, accounting for 81% of total stolen funds.

Although these incidents accounted for only 41.6% of cases, their outsized impact reflects the dangers of poorly managed security protocols. Ethereum is the most affected blockchain this year, with losses exceeding $1.2 billion.

A rather disturbing trend this year is the "pig slaughtering” Scam. These elaborate fraud schemes defrauded more than $3.6 billion from unsuspecting users, with much of the activity centered on the Ethereum blockchain.

“The proliferation of access control breaches and sophisticated scams such as pig killings highlights the importance of implementing AI-driven risk assessment, transaction verification and anomaly detection tools. Security must continue to evolve to cope with increasingly sophisticated and coordinated attacks,” Cyvers told BeInCrypto.

return, Smart contract vulnerability dominate the attack landscape, especially in Decentralized Finance. The worst losses occurred in the third quarter of 2024, with losses reaching $790 million during the same period.

“If cryptocurrency platforms want to avoid becoming the next victims of hackers, they need to deploy robust detection and prevention systems and integrate them with crisis response mechanisms. Cyvers’ data shows that nine out of 10 smart contracts are hacked All have been audited, and many have undergone rigorous penetration testing, which is clearly not enough,” Cyvers researchers noted.

In contrast, Q4 saw a significant decrease in activity, indicating a temporary lull in malicious operations.

Biggest Cryptocurrency Hacks of 2024: WazirX, Radiant Capital, and DMM Bitcoin

This year’s biggest individual events are a stark reminder of the vulnerabilities in the crypto ecosystem.

In July, Indian cryptocurrency exchanges WazirX suffers devastating hacker attacka loss of approximately US$234.9 million. An attacker exploited a weakness in an exchange’s multi-signature (multisig) wallet to gain unauthorized access to funds.

Multi-signature walletMultiple private keys are required for transaction approval and are generally considered more secure. However, this incident demonstrates that poor implementation of such systems can lead to catastrophic breaches.

WazirX temporarily halted trading and withdrawals to contain the damage and initiated a comprehensive security audit. Despite these efforts, the exchange remains offline as it seeks regulatory approval to resume operations.

“We are working hard to obtain court approval of the plan as soon as possible. In accordance with legal and regulatory requirements, the platform will resume trading after the plan takes effect.” WazirX recently Wrote on X (formerly Twitter).

In November, Indian authorities A suspect arrested in connection with the hacking attackalthough the mastermind remains at large. Investigators criticized Liminal Custody, the company responsible for securing the WazirX digital wallet, for failing to provide critical information during the investigation.

Prominent blockchain lender Radiant Capital is another high-profile victim this year. October, platform Over $50 million lost in multi-chain attack.

Hackers reportedly obtained three private keys to the platform, allowing them to steal assets across multiple networks, including DecideBinance Smart Chain, Base, and Ethereum.

This attack has Attributed to North Korean-backed actorsthey are increasingly targeting the cryptocurrency space with advanced strategies. Radiant Capital’s breach reflects the heightened risks associated with cross-chain operations and the urgent need for better private key management.

Meanwhile, Japanese cryptocurrency exchange DMM Bitcoin faces one of the most serious incidents In May 2024, the platform lost approximately 4,502.9 Bitcoins, worth $320 million at the time, after attackers leaked private keys. Despite lengthy efforts to recover stolen assets and reassure customers, DMM Bitcoin announced its closure in December.

The exchange has since started transferring user accounts to SBI VC Trade, signaling a grim end to its operations. The incident highlights the devastating impact of insufficient key security, especially for centralized platforms.

CeFi Risks and New Threats from Advanced Technologies

Centralized Financial Platform (CeFi) continue to face significant challenges. Single points of failure, such as centralized reserves and insufficient oversight of key management, Make these platforms attractive targets for attackers.

Reliance on multi-signature wallets has proven to be vulnerable under certain conditions, further exacerbating these risks. emerging technologies, including Quantum computing and artificial intelligencethe threat is expected to intensify through increasingly sophisticated attack methods.

These developments require proactive security measures to keep pace with the dynamic threat landscape. Experts note that incidents like the WazirX and Radiant Capital breaches could have been avoided by using proactive threat monitoring solutions.

Cyvers told BeInCrypto: “We can safely assess that major attacks such as the $235 million WazirX hack and the $50 million Radiant Capital hack could have been avoided had companies used such solutions, and Save 100% of your money.”

sharp increase Malicious activity this year Reflecting the urgent need for stronger defenses across the cryptocurrency ecosystem. Platforms that lack real-time monitoring and proactive security tools remain highly susceptible to breaches, putting user funds at risk.

The industry must prioritize the adoption of advanced security measures and promote greater collaboration among stakeholders to effectively combat these ongoing threats.

“Zero-day attacks are unpredictable and not based on previously known practices. Without real-time monitoring and detection mechanisms and pre-emptive tools, encryption platforms cannot respond to and block such attacks in real time,” Cyvers experts noted.

As the cryptocurrency industry continues to grow, so does the ingenuity of attackers seeking to exploit its vulnerabilities. The events of this year have made it clear that response measures are no longer enough.