In 2024, cryptocurrency theft reached a staggering $2.2bn, marking a 21% increase from the previous year. According to blockchain analytics firm Chainalysis, North Korean hackers were responsible for 61% of these stolen funds. This year also saw an increase in incidents, with 303 hacks compared to 282 in 2023, making it the fifth time in a decade that annual losses exceeded $1bn.

Geopolitical Shifts Affecting Attack Trends

The first half of 2024 recorded the bulk of losses, with $1.58bn stolen by July, an 84% rise compared to the same period in 2023. However, the frequency of attacks tapered off in the second half of the year, potentially due to geopolitical factors. Analysts speculate that a meeting between Vladimir Putin and Kim Jong-un in June led to the unfreezing of North Korean assets and the provision of advanced military technologies, which may have reduced the need for aggressive hacking activity.

North Korea’s Evolving Tactics

North Korean hackers are becoming more adept at large-scale operations. The report noted a rise in high-value attacks, with incidents exceeding $50m and even $100m becoming more common in 2024 compared to previous years. Simultaneously, there has been a surge in smaller-scale thefts around $10,000, often attributed to North Korean IT workers infiltrating crypto and Web3 companies under false identities or via third-party intermediaries.

Strengthening Industry Defenses

Chainalysis has called on crypto firms to adopt stricter employee vetting processes and improve private key management to safeguard assets. The company also highlighted the importance of data-sharing initiatives, advanced tracing tools, and targeted security training.

With regulatory scrutiny intensifying, firms must bolster platform security and customer asset protection. Collaboration with law enforcement and investment in rapid response capabilities are essential to mitigate future risks. By adopting these measures, the crypto industry can better protect itself from escalating cyber threats.