In the first six months of 2024, crypto theft has soared to $1.38 billion, more than doubling the amount stolen in 2023, according to data from blockchain intelligence firm TRM.
Last year, crypto criminals made off with $1.7 billion, but this year’s thefts are on pace to surpass that figure. Hackers have primarily targeted users’ private keys and seed phrases to access their wallets, in addition to attacking smart contracts and flash loans. “Once a crypto wallet is compromised, it is extremely hard to retrieve stolen funds,” Vatom CEO Eric Pulier told TheStreet Crypto.
Pulier highlighted the lucrative nature of these crimes, noting that hackers often trick users of bitcoin ATMs to access their funds. Techniques include installing malware, capturing transaction data, and using private keys or user credentials. Bitcoin ATMs are particularly vulnerable, with skimming devices and remote access Trojans allowing hackers to manipulate transactions and steal funds.
Despite the alarming rise in theft, the total amount stolen has not yet surpassed the $2 billion mark recorded in the first half of 2022. Notably, nearly three-quarters of the stolen crypto this year originated from just five incidents, indicating that hackers are executing fewer but more substantial heists.
TRM attributes part of this year’s high theft rate to the surge in bitcoin prices following the January launch of the first spot bitcoin exchange-traded funds (ETFs) in the country. Bitcoin reached new highs, surpassing $73,000 this spring, making it an even more attractive target for criminals.
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