As the world's premier investment manager and financial market journalist, I bring you breaking news on the alarming increase in cryptocurrency theft. According to the latest report from blockchain researchers TRM Labs, the amount of cryptocurrency stolen in hacks globally has more than doubled in the first six months of 2024 compared to the same period in 2023. This surge in theft is driven by a combination of large-scale attacks and the soaring prices of cryptocurrencies.
By June 24, 2024, hackers had managed to steal over $1.38 billion worth of crypto, a significant jump from the $657 million stolen in the first half of 2023. The median theft amount has also increased by one-and-a-half times compared to the previous year.
TRM Labs' global head of policy, Ari Redbord, highlighted the correlation between the rising value of cryptocurrencies like bitcoin and ETH (ether) and the heightened motivation for cybercriminals to target crypto services. This trend indicates that hackers can steal more due to the increased value of digital assets.
Despite the recovery of crypto prices from the lows of late 2022, following the collapse of FTX exchange, vulnerabilities in the cryptocurrency ecosystem remain. Notable among the major theft incidents this year was the $308 million worth of bitcoin stolen from Japanese exchange DMM Bitcoin.
In 2022, stolen cryptocurrency volumes amounted to around $900 million, with a significant portion attributed to a $600 million theft from a blockchain network associated with an online game. The United States has linked North Korean hackers to this cybercrime, accusing them of using such attacks to fund illicit activities.
As an analysis of this data reveals, the increasing value of cryptocurrencies has made them lucrative targets for cybercriminals, leading to a surge in theft incidents. Investors and cryptocurrency users must remain vigilant and prioritize security measures to safeguard their digital assets in this evolving landscape.