Ransomware and Hacking Soar in 2024 as Overall Crypto Crime Declines Sharply

A recent report shows a decline in overall illegal cryptocurrency transactions in 2024, but highlights an increase in certain types of crypto crime.

According to Chainalysis’ mid-year update released on August 15, illicit crypto activities have decreased by nearly 20% year-to-date, dropping from $20.9 billion to $16.7 billion by July 2024. This decline is attributed to the growth in legitimate crypto transactions, driven by positive developments such as the approval of Bitcoin and Ethereum ETFs in the US.

Despite these positive trends, Chainalysis notes a rise in two specific criminal activities: stolen funds and ransomware attacks. The total value of stolen cryptocurrency has surged to over $1.58 billion by mid-2024, marking an 84% increase compared to the same period in 2023. This rise is partly due to a significant increase in cryptocurrency prices, which has heightened the value of targeted assets.

The report also reveals a shift in hacker targets. After focusing on decentralized exchanges for several years, attackers are now increasingly targeting centralized exchanges again. For instance, the Japanese DMM exchange lost $305 million in Bitcoin to a hack in May 2024, which constitutes about 19% of the total stolen value this year.

Additionally, ransomware attacks have escalated, with July 2024 witnessing the largest recorded payment of $75 million to the Dark Angels group. This represents a 96% increase from 2023 and a 335% increase from 2022. Chainalysis notes that most ransomware payments are made in cryptocurrency, particularly Bitcoin.

The report indicates that 2024 could become the highest-grossing year for crypto-related ransomware payments, reflecting both the growing value of digital assets and the increasing sophistication of cybercriminals.