Stolen funds and ransomware continue to be major issues in the world of cryptocurrency, with over $2 billion in illicit transactions reported in 2024, according to Chainalysis.
Despite an overall decrease in illicit on-chain activity, stolen funds inflows nearly doubled from $857 million to $1.58 billion, a staggering 84.4% increase compared to the previous year. Ransomware inflows also saw a modest 2% rise, from $449.1 million to $459.8 million. The average amount stolen per hacking event rose by 79.46%, reaching $10.6 million.
Bitcoin’s price surge has contributed to the increase in stolen funds, with BTC transactions accounting for 40% of illicit activity, up from 30% in the previous year. Centralized exchanges have once again become prime targets, with the DMM hack in Japan resulting in a $305 million loss.
Chainalysis has noted that advanced cybercriminals, including individuals linked to North Korea, are employing more sophisticated off-chain methods like social engineering to steal funds from crypto platforms.
Ransomware attacks are also on the rise, with $459.8 million in ransoms paid in the first half of 2024. The largest single payment recorded was around $75 million to the Dark Angels group.
Andrew Davis, general counsel at Kiva Consulting, highlighted the emergence of new ransomware groups using innovative tactics to carry out attacks. Despite the rise in attacks, victims are increasingly refusing to pay ransoms. Law enforcement efforts are crucial in deterring ransomware incidents and sending a clear message that criminal activities will not go unpunished.
In conclusion, the cryptocurrency landscape remains vulnerable to theft and ransomware attacks, underscoring the importance of robust security measures and proactive law enforcement actions to safeguard the integrity of the digital asset ecosystem.