A concerning trend has emerged in the cryptocurrency industry, as hackers have surpassed previous year’s achievements by stealing over $2.3 billion worth of crypto from the Web3 ecosystem in 2024. This alarming figure represents a 40% increase compared to 2023, when hackers stole $1.69 billion worth of crypto.

The Rise of Access Control Breaches

The significant rise in cryptocurrency hacks can be attributed to the appeal of increasing cryptocurrency valuations after Bitcoin (BTC) surpassed the $100,000 mark for the first time on December 6, 2023. According to a report shared by onchain security firm Cyvers, access control breaches were the primary cause of the increase in crypto hacks.

Deddy Lavid’s Insight

Deddy Lavid, co-founder and CEO of Cyvers, highlighted that the rise of access control breaches was mainly attributed to compromised private keys and weak key management systems. He stated:

"These incidents were often facilitated by compromised private keys and weak key management systems, exemplified by high-profile hacks such as multi-signature wallets."

Total Annual Funds Loss

The total annual funds loss in 2024 was $2.36 billion, which is still 37% below the record $3.78 billion stolen in 2022. Despite this decrease, the industry must remain vigilant and take proactive measures to prevent future hacks.

Attack Vectors: Access Control Breaches

Access control vulnerabilities accounted for $1.9 billion worth of value stolen in 2024, or over 81% of the total amount lost to crypto hacks, across 67 cybersecurity incidents.

| Attack Vector | Total Value Lost | Number of Incidents |
| — | — | — |
| Access Control Breaches | $1.9 billion | 67 |
| Smart Contract Exploits | $456 million | 98 |

Smart Contract Exploits

Smart-contract exploits resulted in $456 million stolen across 98 incidents, as the second-largest attack vector responsible for 19% of the value lost in 2024.

Prioritizing Security Practices

To avoid another multi-billion hacking year in 2025, the industry needs to prioritize more robust security practices, such as private key management with offline storage and real-time threat monitoring systems. According to Cyvers’ Lavid:

"By prioritizing education, collaboration, and security innovation, we can significantly reduce these vulnerabilities and foster a safer Web3 ecosystem."

North Korean Hackers: A Growing Threat

The industry must remain vigilant, as North Korean hackers may begin targeting larger objectives, such as the United States spot Bitcoin exchange-traded funds (ETFs). According to Michael Pearl, vice president of GTM strategy at onchain security company Cyvers:

"The FBI has issued a warning that North Korean hackers are going to try to infiltrate and steal money from ETFs. So, all those ETFs […] are storing the base Bitcoin somewhere. And you can be certain that somebody is already planning and thinking of how they’re going to steal it."

Conclusion

The cryptocurrency industry must take proactive measures to prevent future hacks and ensure the security of user assets. By prioritizing education, collaboration, and security innovation, we can significantly reduce vulnerabilities and foster a safer Web3 ecosystem.

Recommended Reading

• Rise of MicroStrategy clones, Asia dominates crypto adoption: Asia Express 2024 review
• Quantum computing will fortify Bitcoin signatures: Adam Back
• Top 100 DeFi Hacks: Offchain attack vectors account for 57% of losses
• North Korean hackers to start targeting Bitcoin ETFs in 2025: Cyvers

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