Originally published on: August 15, 2024
In the latest mid-year update on crypto crime by Chainalysis, a surge in specific types of illicit activities within the crypto space has been noted in 2024. Despite an overall decrease in illicit transactions within the cryptocurrency markets, two concerning trends have emerged – an increase in crypto hacks and ransomware attacks.
Decline in Illicit Activity, but Concerns Surface
While the aggregate illicit activity in crypto has seen a 19.6% decrease year-to-date, dropping from $20.9 billion to $16.7 billion by July 2024, legitimate crypto transactions have been on the rise. The positive growth in legal crypto activities has been attributed to significant industry events like the introduction of spot Bitcoin and Ether exchange-traded funds (ETFs) in the US.
Cryptocurrency Hacking Resurgence
After a notable 50% decline in crypto hacking activity in 2023, these malicious acts have witnessed a resurgence in 2024. The cumulative value of crypto stolen during the first seven months of 2024 has surpassed $1.58 billion, marking an 84% increase compared to the same period in the previous year. Chainalysis raised concerns about the rise in hacking incidents and the average value compromised per attack, which has surged by 79.5%.
CEX Hacks and Ransomware Attacks on the Rise
Chainalysis has highlighted a shift in focus towards centralized exchanges (CEX) by crypto thieves in 2024, diverging from the previous trend of targeting decentralized platforms. Major exchange hacks, such as the $305 million Bitcoin loss by the Japanese DMM exchange DMM, have become more common. Concurrently, ransomware attacks in the crypto space have intensified, with transactions reaching record-high payment values, such as the $75 million payment to the Dark Angels group in July 2024.
Crypto as a Preferred Payment Rail
The overwhelming majority of ransomware payments continue to be made through crypto rails, particularly Bitcoin. Tech firms like CDK Global have reportedly paid millions in BTC as ransom payments, indicating the prevalence of cryptocurrency in these illicit transactions.
In conclusion, the rise in crypto hacks and ransomware attacks in 2024 demands increased vigilance and security measures within the cryptocurrency ecosystem. Stay informed and stay protected in this evolving digital landscape.
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Keywords: crypto hacks, ransomware, Chainalysis report, illicit activity, cryptocurrency, hacking incidents, centralized exchanges, Bitcoin payments, ransomware attacks
