The world of cryptocurrency has seen a significant increase in hacking incidents in 2024, with hackers stealing over $2.3 billion worth of crypto from the Web3 ecosystem. This marks a concerning sign for the industry’s mainstream acceptance and highlights the need for more robust security practices.
A Record-Breaking Year for Crypto Hacks
According to a report shared by onchain security firm Cyvers, crypto hacks saw a sharp uptick in 2024, driven by the appeal of increasing cryptocurrency valuations after Bitcoin (BTC) surpassed the $100,000 mark for the first time on December 6. The report states that hackers stole over $2.3 billion worth of assets across 165 incidents, marking a 40% increase compared to 2023, when hackers stole $1.69 billion worth of crypto.
Total Annual Funds Loss
* Total annual funds loss: **$2.36 billion** (Source: Cyvers)
This significant increase in hacking incidents is attributed mainly to the rise of access control breaches, particularly centralized exchanges (CEXs) and crypto custodians. Deddy Lavid, co-founder and CEO of Cyvers, told Cointelegraph:
"These incidents were often facilitated by compromised private keys and weak key management systems, exemplified by high-profile hacks such as multi-signature wallets…"
A Look at the Data
While the increase in hacking incidents is concerning, it’s worth noting that the $2.36 billion stolen in 2024 was still 37% below the record $3.78 billion stolen in 2022.
| Attack Vector | Funds Lost ($) | Number of Incidents |
| — | — | — |
| Access Control Breaches | $1.9 billion | 67 |
| Smart Contract Exploits | $456 million | 98 |
As can be seen from the data, 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.
Why Are Hacking Incidents on the Rise?
According to Lavid, there are several reasons why hacking incidents have increased:
- "By prioritizing education, collaboration, and security innovation, we can significantly reduce these vulnerabilities and foster a safer Web3 ecosystem."
The Need for Improved Security Practices
To avoid another multi-billion hacking year in 2025, the industry needs to prioritize more robust security practices, such as private key management with offline storage and real-time threat monitoring systems.
North Korean Hackers: A Growing Threat?
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 onchain security company Cyvers. Pearl told Cointelegraph:
"The FBI has issued a warning that North Korean hackers are going to try to infiltrate and steal money from ETFs… 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 recent surge in crypto hacks highlights the need for more robust security practices within the Web3 ecosystem. By prioritizing education, collaboration, and security innovation, we can significantly reduce vulnerabilities and foster a safer environment.
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