Crypto crimes arrive in 2024: report

However, the company said that cryptocurrency penetration trends changed in mid-2024.

By July, the value of stolen cryptocurrencies had reached nearly $1.6 billion, and was on track to reach record levels for the entire year. However, piracy activity slowed significantly in the second half of the year.

Chainalysis attributed the slowdown to a decline in the activity of North Korean hackers, who allegedly accounted for more than half of the total cryptocurrencies stolen in 2024, roughly $1.3 billion USD – more than double the total attributed to North Korea in 2023.

However, it said North Korean hacker activity fell by about 53.7% after July 1, while hacks from other sources rose by about 5%.

Chainalysis noted that this shift coincided with a summit between North Korea and Russia, which may have changed North Korea’s activity.

“We quickly started the year to be among the worst ever in terms of stolen funds. However, starting around July, we noticed a sharp decline in the volume of hacking, coinciding with the Putin with Kim Jong Un.

Regardless, Chainalysis said the increase in stolen cryptocurrencies highlights the need to strengthen security in the sector.

In particular, the company reported that private key compromises — ostensibly secure, randomly generated passwords used to access cryptocurrency accounts — were involved in 43.8% of cryptocurrency theft in 2024.

“Private key waivers continue to be a major concern, especially as larger institutions begin to participate in the cryptocurrency ecosystem,” Jardine added.

At the same time, the report noted that as regulatory frameworks for cryptocurrencies continue to develop, platform security and protection of customer assets will likely receive increased attention and scrutiny.