Crypto Scams Of 2024
The cryptocurrency sector has seen an explosive growth over the year which is being driven by rising adoption, increased investment and the evolution of decentralized technologies.
However, as the digital asset market continues to grow. So too does its vulnerability to hacks and scams. In 2024, this dark side of crypto reached new heights with billions of dollars stolen through cyberattacks and fraudulent schemes. Highlighting the need for enhanced security and your own personal vigilance.
Record Breaking Stolen Crypto
According to a report by blockchain analysis firm Chainalysis hackers stole a staggering USD 2.2 billion USD (approximately 3.5 billion AUD) in 2024 which is a 21% increase compared to the previous years.
This marks the fourth consecutive year that crypto hacking losses have exceeded USD 1 billion, with the total number of incidents rising from 282 in 2023 to 303 in 2024. The sharp rise in hacks aligns with Bitcoin's 140% price surge this year which attracted more institutional investors and public attention.
Among the major incidents were the USD 305 million heist from Japan's DMM Bitcoin in May and the USD 235 million stolen from India's WazirX in July. These attacks primarily targeted centralized exchanged (CEX) with compromised private keys accounting for 44% of the losses. The prevalence of private key breaches shows the urgent need for better key management and security protocols.
North Korea Continues To Be A Major Crypto Hacking Force
State sponsored hackers from North Korea played a significant role in 2024’s crypto crime wave. Chainalysis reports that North Korean hackers were responsible for stealing 1.34 billion USD representing 61% of the total funds lost to hacks this year. This figure indicates a 102% increase compared to 2023 and sets a new record for North Korea’s crypto related thefts.
The stolen funds are believed to support the nation’s weapons development program which are a way of the nation to bypass international sanctions. North Korean hackers executed a total of 47 attacks in 2024 demonstrating a growing capacity for orchestrating large scale heists. One notable case linked to North Korea was the DMM Bitcoin hack. Where blockchain analysis traced stolen funds to coin mixing services.
Decentralized finance (DeFi) platforms and centralized exchanges faced ongoing attacks in 2024. While DeFi platforms have improved their security audits to reduce exploitable flaws, they remain a prime target for hackers due to their open source nature and significant liquidity pools.
Centralized platforms, meanwhile saw an increase in incidents involving private key compromises highlighting the importance of robust user authentication and asset protection measures.
Rug Pulls and Fraudulent Projects
Scams, such as rug pulls were also wreaking havoc in the crypto space. One high profile example was the collapse of the $HAWK meme coin which lost 95% of its value within hours of its launch. Promoted by social media influencers and touted as a cultural gateway to Web 3.0 the project raised expectations but fell victim to snipers who exploited the trading fees and lack of lock up mechanisms.
The aftermath left investors with substantial losses and led to lawsuits against the project's team and promoters for allegedly misleading the public. Such incidents are set as a reminder of the importance of thorough due diligence and scepticism when evaluating investment opportunities in the crypto space.
As we enter 2025 this year is set as a reminder on why security and care is needed and remember, not everyone in this space is here to help you and is looking to take your hard earned money.
Remember, Be Safe!
image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.
Posted Using InLeo Alpha