The cryptocurrency market has seen a dramatic rise in stolen funds in the first half of 2024, according to blockchain research firm TRM Labs. This is quite alarming, considering that we're not even yet reaching the second half of the year.
Their report reveals a staggering increase compared to the same period last year. This could mean that more crypto hacks will happen in the next few months.
Double Trouble: More Hacks, More Money Stolen
Over $1.38 billion worth of crypto has been pilfered by hackers by June 24. This represents more than double the amount stolen ($657 million) during the first half of 2023. This surge is attributed to two key factors, according to the experts.
As Bloomberg states in its reports, this accounts for five large attacks that happened so far which was 70% of all the crypto stolen.
"While we have not seen any fundamental changes in the security of the cryptocurrency ecosystem, we have seen a significant increase in the value of various tokens - from bitcoin to ETH (ether) and Solana - compared to the same time last year," the global head of policy at TRM Labs, Ari Redbord said.
The median size of cryptocurrency thefts has also grown significantly, increasing by 50% compared to the previous year. This suggests cybercriminals are targeting bigger gains in fewer attacks.
It's also important to note that the general recovery of cryptocurrency prices after the 2022 market crash presents a more lucrative target for hackers.
Bitcoin, for instance, reached an all-time high of over $73,000 this year, making stolen coins even more valuable.
The DMM Bitcoin Breach Was the Worst So Far
The report highlights a major incident - the theft of roughly $308 million in Bitcoin from the Japanese exchange DMM Bitcoin. This large-scale attack, referred to as an "unauthorized leak" by the company, exemplifies the potential losses crypto firms face. While such significant breaches are uncommon, they raise concerns about security vulnerabilities.
North Korea's Alleged Involvement
Cryptocurrency thefts in 2022 reached around $900 million, with a notable case involving the Axie Infinity blockchain network hack. That was the peak of the crypto game's popularity when many investors from various countries invested a lot of money into it.
As Reuters writes in its latest report, the United States claims North Korean hackers were behind this $600 million heist, allegedly fueling their nuclear and missile programs. North Korea, however, has consistently denied involvement in cyberattacks.
In 2023, the total worth of cryptocurrency stolen reached $1.8 billion.
The findings by TRM Labs underscore the evolving landscape of cryptocurrency security. While crypto offers can easily entice users, the platforms should know that protecting their customers means retaining their trust and security.
As the market matures and values fluctuate, there's a need for security measures to be improved. Crypto businesses should know that safeguarding their assets and investor trust should be their priority next to profit.
