The total value of cryptocurrency stolen this year has surged by 21%, reaching a substantial $2.2 billion. According to a recent report by Chainalysis, more than half of this amount was stolen by North Korea-affiliated hacking groups.

Geopolitics in Play

The report highlights that most crypto hacks occurred between January and July this year, with the amount stolen exceeding $1.58 billion – an 84.4% increase compared to the same period in 2023. However, following the June summit between Vladimir Putin, the Russian president, and Kim Jong Un, the leader of North Korea, hacking events became significantly infrequent.

North Korea’s Alliance with Russia

Chainalysis attributes this decrease in hacking activity to North Korea’s alliance with Russia. The report notes that after the June summit, the amount of crypto assets stolen by North Korea-linked hackers dropped by 53.73%. This suggests that North Korea may have switched up its cybercrime tactics due to increased cooperation with Russia.

Victims Need Stronger Security

Crypto hacking continues to pose a constant threat, with over a billion dollars’ worth of crypto being hacked in four separate years within the past decade (2018: $1.5 billion, 2021: $3.3 billion, 2022: $3.7 billion, and 2023: $1.8 billion). Decentralized finance (DeFi) platforms that don’t implement proper security practices have been the primary targets of cryptocurrency hacks in the last three years.

Centralized Services Targeted

Between Q2 and Q3 2024, centralized services were the main target of attacks. A few notable cases include:

• DMM Bitcoin: A Japanese crypto exchange that lost $305 million (48 billion yen) in bitcoin.
• WazirX: An Indian crypto exchange that halted withdrawals in July after a security breach by North Korea-linked hackers.

Crypto Hacks by the Numbers

| Year | Total Value Stolen |
| — | — |
| 2018 | $1.5 billion |
| 2021 | $3.3 billion |
| 2022 | $3.7 billion |
| 2023 | $1.8 billion |

Chainalysis Report Highlights

• More than half of the total value stolen was attributed to North Korea-affiliated hacking groups.
• The amount of crypto assets stolen by North Korea-linked hackers dropped by 53.73% after the June summit between Putin and Kim Jong Un.

Conclusion

The rise in crypto hacks is a pressing concern, with over $2 billion worth of assets stolen this year alone. As the cryptocurrency market continues to grow, it’s essential for individuals and organizations to prioritize security measures to protect themselves against these threats.

Recommendations

• Implement robust security practices on DeFi platforms.
• Centralized services should invest in advanced security measures to prevent hacking attempts.
• Individuals should be cautious when using cryptocurrency exchanges and prioritize security best practices.

By understanding the trends and patterns of crypto hacks, we can better equip ourselves to combat this growing threat. As the cryptocurrency market continues to evolve, it’s essential for all stakeholders to work together to create a safer and more secure environment for everyone involved.