- Crypto thefts and ransomware skyrocketed in 2024, with record-breaking payments and stolen funds
- Bitcoin’s share of stolen funds rose, while centralized exchanges also became prime targets for hackers
Cryptocurrencies have steadily gained popularity in 2024, with the same marked by numerous positive developments on various fronts. However, things have not exactly been smooth sailing for this asset class.
Troubling crypto trends
Although overall illegal activity has fallen to previous year’s levels, certain worrying trends have also emerged compared to previous years.
This sheds further light on the same, according to a recent study conducted by Chain analysis revealed,
“Total illegal activity fell 19.6% YTD, from $20.9 billion to $16.7 billion, showing that legitimate activity is growing faster than illegal activity in the chain.”
According to Eric Jardine, Cybercrimes Research Lead at Chainalysis, inflows into legitimate crypto services have reached the highest level since the bull market peak in 2021. She added:
“The growth of legitimate activity exceeding that of illegal activity in the chain demonstrates the continued transition of cryptocurrencies into the mainstream.”
Side effects of increasing cryptocurrency adoption
Despite such progress, increased influx into cybercrime-related entities suggested that while mainstream adoption of crypto is growing, so is its exploitation by malicious actors.
Source: Chain analysis
According to the report, crypto thefts have nearly doubled year-over-year, from $857 million to $1.58 billion.
Furthermore, the influx of ransomware has also increased slightly, indicating that we may be in for a record year for these types of crimes.
“2024 saw the largest ransomware payment ever recorded: approximately $75 million to the Dark Angels ransomware group.”
Source: Chain analysis
The analysis also revealed a sharp resurgence in hacking activity in 2024, with stolen crypto funds reaching a value of $1.58 billion – an increase of 84.4% from last year. Moreover, while the number of incidents increased only slightly, the average number of stolen goods per event increased by 79.46%, from $5.9 million in 2023 to $10.6 million in 2024.
Source: Chain analysis
This revival is largely due to a significant increase in asset prices, especially Bitcoin [BTC]which more than doubled from an average of $26,141 to $60,091.
Jardine expressed his frustration, adding:
“It is very encouraging to see that criminal activity continues to make up an increasingly smaller part of the crypto ecosystem.”
Not all negative!
As is clear, the report also highlights a disturbing correlation between the rise in ransomware and the rising number of stolen funds, with some major heists linked to organized groups, including those from North Korea.
However, despite this increase in high-profile cybercrime, there is a positive trend within the crypto sector.
According to the company’s analysis, there has been a notable shift in crypto theft trends. Bitcoin’s share of transaction volume from stolen funds has risen from 30% last year to 40% this year, reflecting a change in the type of targets.
On the other hand, centralized services, especially exchanges like DMM – which lost $305 million and had 4,500 BTC stolen – are now prime targets.
This shift suggests that after four years of focusing on decentralized platforms, thieves are returning to centralized exchanges, which handle significant Bitcoin transactions.
Actions to strengthen safety
Since most crypto-related crimes are committed on the blockchain, law enforcement can track and analyze these transactions to effectively understand and break up criminal operations.
As Camichel, a researcher at eCrime.ch, said:
“I believe takedowns and law enforcement actions such as Operation Cronos, Operation Duck Hunt and Operation Endgame are essential to curb these activities and signal that criminal actions will have consequences.”