Crypto Crime Update: Ransomware and Exchange Hacks on the Rise in 2024

The cryptocurrency world is facing new challenges as crypto crime continues to evolve. Despite overall illicit activity dropping by nearly 20% this year, two areas of concern have emerged: ransomware attacks and stolen funds from exchanges.

Chainalysis, a leading blockchain analysis firm, released its mid-year report on August 15, 2024, revealing some worrying trends in the crypto crime landscape. While legitimate cryptocurrency use is growing faster than illegal activities, cybercriminals are becoming bolder and more sophisticated in their approaches.

How Did Crypto Crime in 2024 Look?

Ransomware attacks have reached new heights in 2024, with payments already totaling $459.8 million by mid-year. This puts 2024 on track to be the worst year on record for ransomware. The largest single ransom payment ever recorded reached a staggering $75 million, paid to a group called Dark Angels.

What’s even more concerning is the rise in the average ransom demand. For the most severe attacks, the typical payment has jumped from about $200,000 in early 2023 to $1.5 million by mid-2024. This suggests that criminals are now targeting bigger businesses and important computer systems that can afford to pay more.

On the exchange front, hackers have stolen a whopping $1.58 billion in cryptocurrency in the first seven months of 2024. This is almost double the amount stolen during the same period last year. Interestingly, thieves seem to be going back to attacking centralized exchanges rather than focusing on decentralized finance (DeFi) platforms.

One major hack targeted DMM, a centralized exchange, resulting in a loss of $305 million. This single incident accounted for about 19% of all stolen funds in 2024 so far.

Experts believe that the rise in Bitcoin’s price, which averaged $60,091 in the first seven months of 2024 (up from $26,141 in 2023), has made centralized exchanges more attractive targets. These exchanges typically hold large amounts of Bitcoin, unlike many DeFi platforms.

Another troubling development is the use of social engineering tactics by hackers. Some cybercriminals, including those linked to North Korea, are even applying for IT jobs to gain inside access to crypto companies.

Despite these challenges, there is some good news. Victims of ransomware attacks are paying ransoms less often, showing improved preparedness and resilience. Law enforcement efforts have also disrupted major ransomware groups, leading to a more fragmented cybercrime landscape.

As the crypto industry continues to grow and mature, the fight against cybercrime remains a top priority. Both companies and individuals must stay vigilant and adopt strong security measures to protect their digital assets in this ever-evolving threat landscape.