During the first seven months of 2024, the value of cryptocurrencies stolen through hacks nearly doubled to $1.6 billion.
The report attributes this significant increase in the value of stolen coins to the rise in crypto asset prices during this period.
Despite the increase in the value of stolen coins, the number of hacks has only increased slightly.
149 hacking incidents were recorded, compared to 145 incidents during the same period in 2023.
This small change in the number of transactions, compared to the large increase in the value of stolen coins, reflects the effect of rising prices on the size of the losses.
Impact of rising digital asset prices
Eric Jardine, head of cybercrime research at Chainalysis, noted that the increase in the value of stolen coins is partly linked to a significant rise in crypto asset prices in 2024.
For example, Bitcoin rose to nearly $74,000 in March, boosted by the launch of spot exchange-traded funds in the United States.
Despite fluctuations that erased some of the gains, the currency's value has risen by 38% this year.
The Chainalysis report explained that Bitcoin alone accounted for 40% of the value of stolen currencies during this year, which reflects the extent to which hackers are targeting this currency in light of its rising market value.
Compared to previous years
In 2022, $3.7 billion worth of cryptocurrencies were stolen as hackers exploited security vulnerabilities.
However, this tally fell to $1.7 billion in 2023, as enhanced security measures and the failure of cryptocurrency prices to fully recover contributed to the reduction in losses.
Targeting centralized platforms
Chainalysis' report indicated that hackers are back targeting centralized exchanges after four years of focusing on decentralized platforms.
The report also showed that hacking groups linked to North Korea are using advanced social engineering techniques to hack these platforms.
It is worth noting that US authorities have linked North Korea to some of the largest cryptocurrency thefts.
This year, the Asia-Pacific region has been the target of several high-profile attacks.
For example, the Japanese company DMM Bitcoin suffered a loss of $301 million, while $235 million was stolen from the Indian company WazirX.
These attacks highlight a shift in hacker strategies to target centralized platforms that hold large amounts of digital assets.
Source: Arab Economic Platform
