According to a report released by blockchain analysis firm Chainalysis, the amount of money obtained through cryptocurrency platform hacking increased by 21% from the previous year to USD 2.02 billion in 2024.
It stated that the number of hacking incidents increased to 303 from 282 in 2023 and that the total hacking amount surpassed USD 1 billion for the fourth consecutive year.
In 2023, hackers had taken USD 1.08 billion. As Bitcoin BTC increased 140% in 2024 to reach the USD 100,000 mark, attracting institutional participation and support from United States President-elect Donald Trump, there has been an increase in cryptocurrency thefts.
“As the digital asset market booms, it is typical to see the illicit use of crypto grow in tandem. Countering the proliferation of these crimes — especially fraud — will undoubtedly be a key challenge for the industry in the new year,” Chainalysis’ cybercrimes research lead Eric Jardine said, as reported by Reuters.
According to the report, the majority of cryptocurrency thefts in 2024 were caused by breaches in the private key that governs access to users’ assets, with centralised platforms being the target of the majority of attacks. The most prominent hacks include the May theft of over USD 305 million from Japan’s cryptocurrency exchange DMM Bitcoin and the July loss of USD 235 million from India’s WazirX.
According to Chainalysis, cryptocurrency hacking associated with North Korea more than doubled in size from a year ago to reach a record high of USD 1.33 billion in 2024.
According to the United Nations, North Korea can evade international sanctions by using cryptocurrency. Participation in cyber hacking or crypto heists is frequently denied by the nation.
Meanwhile, Ethereum wants to hit USD 4,500 in the next cryptocurrency boom, and investors are keeping a careful eye on the market to find ways to increase their profits. Despite Ethereum’s continued dominance in the blockchain market, new initiatives like DLUME are gaining popularity due to their potential to yield even greater profits.
Also, Bitcoin more than doubled in 2024 driven by the American markets regulator’s approval for exchange-traded funds tied to its spot price, and optimism over easing regulatory hurdles with Donald Trump returning to the White House.
The world’s largest and most well-known cryptocurrency hit USD 100,000 in December 2024, a milestone that has ignited ‘animal spirits’ among supporters of the once-nascent asset class.
According to CoinGecko data, there is more than 120% surge in Bitcoin and a nearly 50% jump in ether, the second-largest cryptocurrency, have propelled the sector’s market value to roughly USD 3.5 trillion
“We remain convinced USD 100,000 is not the final milestone. We expect Bitcoin to hit a cycle-high of USD 200,000 in late 2025,” analysts at brokerage Bernstein wrote in a client note earlier this month.
MicroStrategy, a software firm that has become the world’s largest corporate holder of Bitcoin, has seen its shares surge nearly five-fold in 2024. The stock, which joined the benchmark Nasdaq-100 index recently, is now seen as a proxy for Bitcoin, with its movement closely tied to sentiment towards the digital asset. Several smaller companies are following its playbook and allocating portions of their cash to Bitcoin.
“We expect Bitcoin to emerge as the new-age premier store of value asset eventually replacing gold over the next decade and becoming a permanent part of institutional multi-asset allocation and a standard for corporate treasury management,” Bernstein analysts continued further.
In January 2024, the United States Securities and Exchange Commission (SEC) approved the first ETFs to track the spot price of Bitcoin, marking a watershed moment for the broader crypto industry.
The move gave the sector institutional legitimacy and improved its mainstream appeal as traditional finance heavyweights including BlackRock and Fidelity launched the products.
The victory of Donald Trump, who has promised to make the United States the “crypto capital of the planet,” further bolstered the industry’s position by 2024 end. Crypto advocates donated millions during the election, hoping to elect candidates that favour the sector.
While most crypto stocks have also benefited from the industry-wide rally, with the big winners being MicroStrategy, crypto exchange Coinbase and Bitcoin miner Hut 8, several other crypto miners reeled under shrinking margins due to higher energy and hardware costs, thereby missing out from the gold rush. Prominent are Riot Platforms, Marathon Digital and Bit Digital, whose shares lost between 26% and 32% in 2024.