The year 2024 was pivotal for the cryptocurrency market, showcasing major achievements such as Bitcoin breaking past $100,000 and significant growth in global crypto adoption.
However, it was also marred by alarming security breaches, with over $2.2 billion stolen across 303 hacking incidents. These attacks underscored vulnerabilities within both centralized and decentralized platforms. Below, we highlight the top five crypto hacks of the year and their impact on the industry.
1. DMM Bitcoin Loses $305 Million
In the largest crypto hack of 2024, DMM Bitcoin, a Japanese cryptocurrency exchange, lost $305 million on May 31 due to a breach of private key security. Evidence suggests the attackers were North Korean hackers linked to the Lazarus Group. They laundered the stolen funds using CoinJoin, a Bitcoin transaction mixer.
The hack led to DMM Bitcoin halting operations and announcing its shutdown by December 2024. Plans were made to migrate user accounts to SBI VC Trade by March 2025. This incident highlighted the need for robust private key management and enhanced encryption measures to prevent future breaches.
2. WazirX Suffers a $234 Million Exploit
India’s largest cryptocurrency exchange, WazirX, faced its biggest security breach on July 18, 2024, losing $234.9 million. The attackers exploited vulnerabilities in a newly implemented multi-signature wallet system, requiring four out of six private keys for transactions.
Hackers introduced a fake smart contract to bypass security measures, stealing 35,000 ETH and other digital assets. Despite the arrest of a suspect in West Bengal, the funds were unrecoverable. This incident emphasized the importance of comprehensive smart contract audits and strengthened multi-signature wallet security.
3. PlayDapp Loses $204 Million in Two Attacks
Blockchain gaming and NFT platform PlayDapp was attacked twice in February 2024, resulting in the loss of $204 million worth of PLA tokens. Hackers manipulated smart contracts to gain minting rights, enabling them to generate tokens unlawfully.
PlayDapp halted its PLA smart contract to prevent future exploits but failed to recover the stolen funds. This breach highlighted vulnerabilities in smart contract designs and the need for real-time monitoring of contract execution.
4. Orbit Chain Breach Costs $82 Million
Orbit Chain, a South Korean cross-chain platform, lost $82 million to $100 million in early 2024 due to flaws in its architecture. The attackers exploited these weaknesses to steal funds across multiple blockchains, laundering the stolen assets through Tornado Cash.
Orbit Chain collaborated with law enforcement, offering an $8 million reward for fund recovery. Experts suspected the involvement of North Korean hackers, emphasizing the importance of securely interconnecting blockchain platforms and adopting standardized security measures.
5. Radiant Capital Loses $58 Million
In October 2024, Radiant Capital, a prominent DeFi platform, suffered a $58 million breach. Hackers used advanced malware to compromise the accounts of three trusted developers, gaining access to their private keys. This allowed them to manipulate transaction data and siphon funds across Ethereum, Binance Smart Chain, Arbitrum, and Base networks.
The attack was linked to Citrine Sleet, a North Korean hacking group. Radiant Capital collaborated with cybersecurity firms to enhance its defenses, highlighting the critical need for developer environment security and multi-layered malware protection.
Key Takeaways and Lessons Learned
The top crypto hacks of 2024 revealed systemic vulnerabilities in both centralized exchanges and decentralized finance platforms. Key lessons include:
- Enhanced Private Key Management: Stronger encryption and better storage solutions are essential to protect private keys.
- Rigorous Smart Contract Audits: Comprehensive testing and audits can prevent exploits in contract design and execution.
- Real-Time Threat Detection: Advanced monitoring systems are needed to identify and respond to suspicious activities promptly.
- Developer Environment Security: Protecting developer accounts and tools from sophisticated malware is critical.
Conclusion
The crypto industry in 2024 demonstrated incredible growth but also faced significant setbacks due to security breaches. The losses from these attacks underscore the urgency of addressing vulnerabilities and implementing robust security measures.
As the industry enters 2025, restoring investor confidence will require a proactive approach to cybersecurity. By learning from past mistakes and prioritizing security, the crypto ecosystem can build a more resilient future, ensuring sustainable growth in the face of evolving threats.
Anthony Pedro
Anthony Pedro is a seasoned crypto writer with a deep passion for blockchain technology and digital currencies. With over 4 years of experience in the cryptocurrency space, Anthony has become a trusted voice, offering insightful analysis and commentary on the latest trends, innovations, and market movements. When not writing, he is actively engaged in the crypto community, attending conferences, advising blockchain startups, and experimenting with new projects.