The first half of 2024 has witnessed a significant surge in cryptocurrency thefts, with hackers stealing nearly twice as much as they did in the same period in 2023. According to the latest data from TRM’s threat intelligence team, a staggering USD 1.38 billion was stolen by June 24, 2024, compared to USD 657 million at this time last year.
The increase in stolen funds can be attributed to a few major incidents. Much like in 2023, a small number of large-scale attacks dominated the statistics, with the top five hacks and exploits accounting for 70% of the total amount stolen this year. Among the primary attack methods were private key and seed phrase compromises, smart contract exploits, and flash loan attacks.
The most significant breach occurred in May 2024 when DMM Bitcoin, a prominent Japanese cryptocurrency exchange, suffered a massive attack resulting in the theft of over 4,500 BTC, valued at more than USD 300 million at the time. While the exact cause of the breach remains uncertain, potential attack vectors include stolen private keys or address poisoning. The latter involves attackers sending small amounts of cryptocurrency to a victim’s wallet to create fake transaction histories, potentially misleading users into sending funds to the wrong address in future transactions.
A striking trend noted in TRM’s report is the increase in both the frequency and scale of attacks. Each month in the first half of 2024 saw more money stolen compared to the same months in 2023, with the median hack size increasing by 150%. Despite this alarming rise, the figures are still a third below the same period in 2022, which holds the record for the highest amount stolen through crypto hacks.
Interestingly, TRM’s analysis indicates no fundamental changes in the security of the cryptocurrency ecosystem that could explain the rise in thefts. The number and nature of attacks have remained consistent between 2023 and 2024. However, the significantly higher average token prices in 2024 are likely to have contributed to the increased volumes of stolen funds.
To combat this growing threat, TRM recommends a multi-layered defense strategy for crypto projects. Essential measures include regular security audits, robust encryption, multi-signature wallets, and secure coding practices. Additionally, staying informed about the latest threats, educating employees, and fostering a security-aware culture are crucial steps.
Having a comprehensive incident response strategy is equally important. This can include offering bounties for the return of stolen funds. However, no single measure is foolproof. Therefore, adopting a defense-in-depth approach—implementing multiple, redundant security measures—provides the best protection against potential breaches.