Crypto Hacks Surge 40% Year Over Year, Resulting in Record $2.3 Billion Loss in 2024

The cryptocurrency industry has faced a significant threat from hackers in 2024, surpassing the previous year’s achievements with a staggering $2.3 billion worth of crypto stolen from the Web3 ecosystem. This concerning trend raises questions about the industry’s mainstream acceptance and highlights the need for robust security practices.

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A Sharp Uptick in Crypto Hacks

The sharp increase in cryptocurrency hacks can be attributed to the rising appeal of increasing cryptocurrency valuations after Bitcoin (BTC) surpassed the $100,000 mark for the first time on December 6. This surge in value created a lucrative opportunity for hackers, leading to a significant rise in the number of incidents.

Total Annual Funds Loss

According to a report shared by onchain security firm Cyvers, crypto hackers stole over $2.3 billion worth of assets across 165 incidents in 2024. This marks a 40% increase compared to 2023, when hackers stole $1.69 billion worth of crypto. The total annual funds loss is shown below:

| Year | Total Funds Loss |
| — | — |
| 2022 | $3.78 billion |
| 2023 | $1.69 billion |
| 2024 | $2.36 billion |

The Rise of Access Control Breaches

The 40% increase in total funds loss can be attributed to the rise of access control breaches, particularly in centralized exchanges (CEXs) and crypto custodians. Deddy Lavid, co-founder and CEO of Cyvers, attributes these incidents to compromised private keys and weak key management systems.

"In these incidents, hackers often exploited vulnerabilities in multi-signature wallets, demonstrating the importance of robust security practices," Lavid told Cointelegraph.

Access Control Vulnerabilities

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. This trend highlights the need for more robust security practices and measures to prevent access control breaches.

Smart-Contract Exploits

Smart-contract exploits resulted in $456 million stolen across 98 incidents, as the second-largest attack vector responsible for 19% of the value lost in 2024.

The Industry’s Response

To avoid another multi-billion hacking year in 2025, the industry needs to prioritize more robust security practices. Cyvers’ Lavid emphasizes the importance of private key management with offline storage and real-time threat monitoring systems.

"By prioritizing education, collaboration, and security innovation, we can significantly reduce these vulnerabilities and foster a safer Web3 ecosystem," Lavid said.

The Need for Vigilance

The industry must remain vigilant as North Korean hackers may begin targeting larger objectives, such as the 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," Pearl told Cointelegraph in an exclusive interview. "So, all those ETFs […] are storing the base Bitcoin somewhere. And you can be certain that somebody is already planning and thinking of how they’re going to steal it."

Conclusion

The cryptocurrency industry’s vulnerability to hacking attacks raises concerns about its mainstream acceptance. The need for robust security practices and measures cannot be overstated, as access control breaches and smart-contract exploits continue to pose significant threats.

By prioritizing education, collaboration, and security innovation, the industry can significantly reduce these vulnerabilities and foster a safer Web3 ecosystem. Vigilance is key, as North Korean hackers may begin targeting larger objectives in 2025.