2024

Quantum

PlayDapp

WazirX

Losses from crypto scams, hacks and exploits increased by approximately 21% year-over-year in 2024, and threat actors paid particular attention to centralized services and private keys, according to cybersecurity firms.
Some warn that the continued development of artificial intelligence and quantum vulnerabilities could make things worse. 
In a blog post <a data-ct-non-breakable="null" href="https://www.chainalysis.com/blog/crypto-hacking-stolen-funds-2025/" rel="nofollow noopener" target="_blank" text="null" title="https://www.chainalysis.com/blog/crypto-hacking-stolen-funds-2025/">published</a> on Dec. 19, Chainalsysis said $2.2 billion in funds were stolen in 2024 in 303 incidents, up from 282 in 2023. 
“Interestingly, the intensity of crypto hacking shifted about halfway through the year,” it said, explaining that the cumulative value stolen in the first seven months of 2024 ($1.58 billion) made up 72% of the total amount stolen this year. 
<figure>
 <img alt="Hackers, Scams" src="https://s3.cointelegraph.com/uploads/2024-12/0193d8b4-1d85-7ad3-971e-9a1d96662742" title="">
 <figcaption style="text-align: center;">
 Total value stolen in crypto hacks and the number of hacks. Source: Chainalysis
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The centralized finance (CeFi) sector was hit particularly hard, “experiencing a nearly 1,000% year-over-year increase in incidents,” Web3 cybersecurity firm Cyvers told Cointelegraph.&nbsp;&nbsp;
Institutional investors and traditional financial firms have started to rethink their stance on crypto this year, but many still see it as a risky play. 
Some of the largest exploits of the year targeting centralized exchanges included the hacks on the <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/indian-crypto-exchange-wazirx-hack-235m" rel="" target="_self" text="null" title="https://cointelegraph.com/news/indian-crypto-exchange-wazirx-hack-235m">Indian exchange WazirX</a> in July, which resulted in losses of $235 million, and the <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/japanese-exchange-dmm-loses-bitcoin-private-key-hack" rel="" target="_self" text="null" title="https://cointelegraph.com/news/japanese-exchange-dmm-loses-bitcoin-private-key-hack">Japanese exchange DMM</a>, which lost $305 million in Bitcoin (<a data-ct-non-breakable="null" href="/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) in a private key hack in May.&nbsp;
In February, South Korean NFT and game development platform PlayDapp suffered a <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/playdapp-exploit-continues-4th-day-losses-reaching-290-million" rel="null" target="null" text="null" title="null">private key leak</a> that resulted in losses of around $290 million.&nbsp;
Other notable hacks and exploits included the decentralized finance (DeFi) network Hedgey Finance, which was <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/hedgey-protocol-44-million-exploit" rel="" target="_self" text="null" title="https://cointelegraph.com/news/hedgey-protocol-44-million-exploit">exploited for $44 million</a> in April; the Turkish exchange BtcTurk <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/cryptocurrency-exchange-binance-btcturk-turkey-richard-teng" rel="null" target="null" text="null" title="null">hot wallet attack</a>, which resulted in losses of up to $55 million in June; and the Singaporean exchange BingX, which was <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bingx-minor-loss-hack-climbs" rel="" target="_self" text="null" title="https://cointelegraph.com/news/bingx-minor-loss-hack-climbs">hacked for $52 million in September</a>.
“In 2024, we saw a big shift in crypto attacks, with centralized entities becoming far more prominent targets,” Jean Rausis, cybersecurity expert and co-founder of DeFi ecosystem SmarDex, told Cointelegraph.&nbsp;
Chainalysis found that private key compromises accounted for the largest share of stolen crypto in 2024, at 43.8%. 
“We only have to look at the $305 million DMM Bitcoin hack, which is one of the largest crypto exploits to date, and may have occurred due to private key mismanagement or lack of adequate security,” said the firm. 
<figure>
 <img alt="Hackers, Scams" src="https://s3.cointelegraph.com/uploads/2024-12/0193c434-ca81-74da-a888-bb547b3524d1" title="">
 <figcaption style="text-align: center;">
 November’s losses are the second-lowest monthly losses of 2024 so far. Source: <a data-ct-non-breakable="null" href="https://x.com/CertiKAlert/status/1862828939410034879" rel="null" target="null" text="null" title="https://x.com/CertiKAlert/status/1862828939410034879">CertiK</a>
 </figcaption>
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Besides these headline-making catastrophes, there have been hundreds of smaller <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/articles/crypto-hacks-and-scams" rel="null" target="null" text="null" title="null">hacks and scams</a> this year, from pig butchering and fake airdrops to SIM swap attacks.&nbsp;
Blockchain bridge vulnerabilities continued to be a significant attack vector this year, while sophisticated social engineering and phishing attacks, often generated by AI, targeted individuals and crypto wallets.&nbsp;
<h2 id="rise-of-ai-driven-crypto-scams">Rise of AI-driven crypto scams</h2>
“While cybersecurity measures are getting more sophisticated, so are attack vectors,” said Rausis. “The increasing use of AI by cybercriminals is particularly concerning because it means they can keep coming up with fresh types of phishing schemes and automated attacks,” he added, before predicting more high-profile attacks next year.&nbsp;
<blockquote>
 “This means both CeFi platforms and DeFi protocols will have to keep upping their game in 2025, and I wouldn’t be surprised if we keep seeing more and more sophisticated high-profile hacks over the coming years.”
</blockquote>
“The current bull market we’re experiencing is set to continue into 2025, so the proliferation of crime will be a key challenge facing the industry next year,” Phil Larratt, director of investigations at Chainalysis, told Cointelegraph.&nbsp;
<h2 id="lessons-learned-from-2024">Lessons learned from 2024</h2>
There are a number of takeaways from this year’s grim cybersecurity record.
Multifactor authentication is crucial for protecting crypto assets for both individuals and companies, and users must be extremely cautious of unsolicited communications and potential phishing attempts from entities <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/coinbase-support-scammer-boasts-earning-5-figures-a-week-phishing-crypto-ceos" rel="" target="_self" text="null" title="https://cointelegraph.com/news/coinbase-support-scammer-boasts-earning-5-figures-a-week-phishing-crypto-ceos">impersonating exchange support personnel</a>.&nbsp;
<figure>
 <img alt="Hackers, Scams" src="https://s3.cointelegraph.com/uploads/2024-12/0193c436-19a5-7fc0-a1b4-40203da37045" title="">
 <figcaption style="text-align: center;">
 Casa CEO Nick Neuman interviewed a crypto scammer in November. Source: <a data-ct-non-breakable="null" href="https://x.com/Nneuman/status/1859279048179863582" rel="null" target="null" text="null" title="https://x.com/Nneuman/status/1859279048179863582">Nick Neuman</a>
 </figcaption>
</figure>
Cold storage and self-custody have also been in the spotlight this year after MicroStrategy founder Michael Saylor <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/michael-saylor-u-turn-self-custody-sparks-criticism" rel="null" target="null" text="null" title="null">sparked a debate</a> about whether big banks should be custodying Bitcoin.&nbsp;
However, using certain hardware wallets such as Ledger may also open up the floodgates to phishing attacks, which have continued unabated following its database breach in 2020.&nbsp;
<h2 id="quantum-computing-ai-attack-vectors">Quantum computing, AI attack vectors&nbsp;</h2>
Cyvers’ co-founder and chief technology officer, Meir Dolev, and the firm’s senior blockchain scientist, Hakan Unal, emphasized the importance of adopting advanced security strategies, such as real-time threat detection, crosschain monitoring and preemptive prevention measures to mitigate these rising risks.&nbsp;
<blockquote>
 “Emerging threats like AI-driven attacks and quantum vulnerabilities highlight the need for proactive measures and stronger regulatory oversight to protect digital assets.”
</blockquote>
They added that attack vectors would continue to evolve in 2025. These would include AI-powered threats such as sophisticated phishing, deepfake scams, and malware capable of evading detection.
Other new attack vectors to expect include supply chain attacks, Internet of Things vulnerabilities, cloud and API exploitation, and quantum computing threats.
“Although still emerging, quantum computing poses a long-term risk to current encryption standards, requiring a proactive shift toward quantum-safe protocols,” they said.
On Dec. 9, search giant Google <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/google-unveils-new-quantum-computing-chip-clock-ticking-crypto-encryption" rel="" target="_self" text="null" title="https://cointelegraph.com/news/google-unveils-new-quantum-computing-chip-clock-ticking-crypto-encryption">unveiled a new quantum computing chip</a> called Willow that it claims can exponentially correct errors and process certain computations at a “mind-boggling” pace.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/articles/unmasking-the-top-10-crypto-scammers" rel="null" target="null" text="null" title="null">Witch hunt: Unmasking the top 10 crypto scammers and their tactics</a>

Crypto thieves score big on centralized services, private keys in 2024

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