- It not only poses a financial risk to individuals and businesses but also raises concerns about the overall stability and trust in digital finance ecosystem.
In the rapidly evolving world of digital finance, the cryptocurrency landscape has become a prime target for cybercriminals, with a staggering increase in the amount of cryptocurrency stolen through hacks globally.
According to a recent report by blockchain researchers TRM Labs, the losses from these attacks more than doubled in the first six months of 2024 compared to the same period in the previous year.
The report reveals that hackers had stolen more than $1.38 billion worth of cryptocurrency by June 24, 2024, a significant jump from the $657 million stolen in the same period in 2023.
The alarming trend is driven by a small number of large-scale attacks and the rising prices of various cryptocurrencies, including Bitcoin and Ethereum.
A powerful motivator
Ari Redbord, the global head of policy at TRM Labs, explained that while there haven’t been any fundamental changes in the security of the cryptocurrency ecosystem, the increased value of digital assets has served as a powerful motivator for cybercriminals.
“This means that cybercriminals are more motivated to attack crypto services, and can steal more when they do,” Redbord said.
The report highlights the vulnerability of cryptocurrency companies, which are frequent targets for hacks and cyberattacks. One of the largest crypto losses this year was the roughly $308 million worth of Bitcoin stolen from the Japanese crypto exchange DMM Bitcoin, which the company described as an “unauthorised leak.”
Challenges facing the industry
Interestingly, the report also notes that the overall stolen cryptocurrency volumes in 2022 were around $900 million, partly due to the more than $600 million stolen from a blockchain network linked to the online game Axie Infinity.
The United States has linked North Korean hackers to that theft, further emphasising the global nature of this issue.
The United Nations has accused North Korea of using cyberattacks to help fund its nuclear and missile programs, underscoring the broader implications of these cryptocurrency thefts. North Korea has, however, denied these allegations of hacking and other cyberattacks.
As the cryptocurrency market continues to evolve and attract more investors, the cybersecurity challenges facing the industry are becoming increasingly pressing.
The escalating threat of cryptocurrency hacks not only poses a financial risk to individuals and businesses but also raises concerns about the overall stability and trust in the digital finance ecosystem.