The value of digital assets stolen through hacks and other cybercrime has skyrocketed by 84.4% in 2024, according to a new report. Over $1.58 billion worth of cryptocurrency has been stolen through July alone. This surge is a worrying trend, highlighting the evolving landscape of cyber threats in the cryptocurrency industry.
While overall illicit activity in the cryptocurrency ecosystem has decreased by 19.6% year-to-date, specific types of cybercrime have seen significant increases. According to Chainalysis, a leading blockchain analysis firm, stolen funds and ransomware attacks have witnessed notable growth. This shift suggests a renewed focus on targeting centralized exchanges, with Bitcoin accounting for 40% of stolen crypto assets, up from 30% last year.
The rise in stolen funds is not simply due to an increase in attack frequency but also due to larger heists. The average amount stolen per incident has jumped by 79.46%, rising from $5.9 million in the first seven months of 2023 to $10.6 million in 2024.
Ransomware attacks have also reached new heights, with 2024 on track to be the highest-grossing year yet. Through June 2024, ransomware payments totaled $459.8 million, surpassing the $449.1 million recorded during the same period last year. The report highlights a staggering increase in the maximum ransom payment, with a single payment of approximately $75 million made to a group known as Dark Angels. This signifies a growing sophistication and audacity among ransomware operators.
Andrew Davis, general counsel at Kiva Consulting, comments on the evolving nature of ransomware attacks, stating that “Whether it be former affiliates of these well-known threat actor operations, or new upstarts, a large number of new ransomware groups have joined the fray, displaying new methods and techniques to carry out their attacks.”
Despite the increase in attack frequency and severity, there is a silver lining. The report suggests that victims are paying ransoms less often, potentially indicating better preparedness and resilience among targeted organizations. This suggests that organizations are taking steps to enhance their cybersecurity defenses and mitigate the impact of these attacks.
The Chainalysis report emphasizes the importance of blockchain analysis in combating these cyber threats. “Because the operations for crypto heists and ransomware operate almost entirely on the blockchain, law enforcement armed with the right solutions can follow the money to better understand and disrupt these actors’ operations,” the report states. This underscores the critical role of blockchain analysis in identifying and tracking criminal activities in the cryptocurrency space.
Corsin Camichel, a researcher with eCrime.ch, emphasizes the importance of law enforcement actions in curbing these activities. “I believe takedowns and law enforcement actions like Operation Cronos, Operation Duck Hunt, and Operation Endgame are essential in curbing these activities and signaling that criminal actions will have consequences.”
As the cryptocurrency industry continues to grapple with these challenges, the upcoming Benzinga Future of Digital Assets event on November 19 is poised to be a crucial platform for discussing cybersecurity strategies and the evolving landscape of digital asset protection. The event will bring together industry experts, policymakers, and security professionals to address these critical issues and explore solutions to mitigate the growing threat of cybercrime in the digital asset space.
