The world of cryptocurrency has witnessed a significant increase in hacking incidents in 2024. According to a report shared by onchain security firm Cyvers, hackers stole more than $2.3 billion worth of crypto from the Web3 ecosystem, surpassing the previous year’s achievements. This concerning sign raises questions about the industry’s mainstream acceptance.
Sharp Uptick in Crypto Hacks
The rise in cryptocurrency valuations after Bitcoin surpassed the $100,000 mark for the first time on December 6th drove a sharp uptick in hacking incidents. The appeal of increasing cryptocurrency valuations created an environment conducive to hacking activities. As a result, crypto hackers stole over $2.3 billion worth of assets across 165 incidents.
40% Increase Compared to 2023
The total annual funds loss in 2024 marks a significant increase compared to the previous year. According to Cyvers’ report, hackers stole $1.69 billion worth of crypto in 2023. The 40% increase in hacking incidents highlights the growing concern for the industry’s security.
Access Control Breaches: Main Culprit
The 40% increase was mainly attributed to the rise of access control breaches. Access control vulnerabilities accounted for $1.9 billion worth of value stolen in 2024, or over 81% of the total amount lost to crypto hacks across 67 cybersecurity incidents.
Attack Vector Breakdown: Funds Loss
- Access Control Breaches: $1.9 billion (over 81%)
- Smart-contract exploits: $456 million stolen across 98 incidents, accounting for 19% of the total value lost in 2024.
- Smart contracts are self-executing contracts with the terms of the agreement written directly into lines of code. They play a crucial role in the Web3 ecosystem, and vulnerabilities in smart contract code can lead to significant losses.
- Smart-contract exploits: $456 million stolen across 98 incidents, accounting for 19% of the total value lost in 2024.
Avoiding Another Multi-Billion Hacking Year
To avoid another multi-billion hacking year in 2025, the industry must prioritize more robust security practices. This includes private key management with offline storage and real-time threat monitoring systems.
North Korean Hackers: A Growing Concern
The industry must remain vigilant as North Korean hackers may begin targeting larger objectives, such as United States spot Bitcoin exchange-traded funds (ETFs). According to Michael Pearl, vice president of GTM strategy at Cyvers, "the FBI has issued a warning that North Korean hackers are going to try to infiltrate and steal money from ETFs."
Cybers’ Recommendations for Security Innovation
To mitigate the risks associated with access control breaches and smart contract exploits, the industry must prioritize education, collaboration, and security innovation. By doing so, we can significantly reduce vulnerabilities and foster a safer Web3 ecosystem.
Key Takeaways
- Cryptocurrency hacks saw a sharp uptick in 2024, driven by increasing cryptocurrency valuations.
- Access control breaches accounted for over $1.9 billion worth of value stolen in 2024.
- Smart-contract exploits resulted in $456 million stolen across 98 incidents.
- The industry must prioritize more robust security practices to avoid another multi-billion hacking year.
Conclusion
The world of cryptocurrency is facing significant challenges when it comes to security. To maintain mainstream acceptance, the industry must prioritize education, collaboration, and security innovation. By doing so, we can create a safer Web3 ecosystem for all stakeholders.
References:
- Cyvers’ Report on 2024 Crypto Hacks
- Interview with Michael Pearl, Vice President of GTM Strategy at Cyvers