Centralized exchanges taken over by hackers as ransomware payments soar in 2024: Chainalysis

While illicit transactions have generally decreased since last year, there has been a notable increase in stolen funds and ransomware. The amount of funds stolen in cryptocurrency scams has nearly doubled, from $857 million to $1.58 billion as of the end of July.

Ransom payments have also increased, with mid-year 2023 figures coming in at $449.1 million compared to $459.8 million this year. Such a trend suggests the possibility of a record year for ransomware.

Criminals are once again focusing on centralized exchanges

By the end of July this year, the total value of stolen assets had exceeded $1.58 billion, an increase of 84.4% compared to the same period last year, according to the latest findings from Chainalysis shared with CryptoPotato.

Despite this significant increase in stolen value, the number of hacking incidents in 2024 only slightly outpaced those in 2023, with a modest increase of 2.76% over the previous year. At the same time, the average value compromised per incident jumped 79.46%, from $5.9 million per event in the first half of 2023 to $10.6 million per event so far in 2024.

The blockchain data platform also said that criminals appear to be returning to their roots and targeting centralized exchanges again after four years of focusing on their decentralized counterparts.

Following a spike in attacks on DeFi services and cross-chain bridges in 2022, attackers, including those from North Korea, are using advanced social engineering tactics, such as applying for IT jobs, to hack these exchanges. In fact, the UN reported that more than 4,000 North Koreans are now employed by Western tech companies.

Increase in ransomware attacks

According to Chainalysis, ransom payments reached $459.8 million, suggesting that 2024 will be the worst year on record. Ransomware activity has remained fairly consistent despite the disruptions caused by LockBit and ALPHV/BlackCat, according to Andrew Davis, general counsel at Kiva Consulting.

“Whether they are former affiliates of these well-known threat actor operations or newcomers, a large number of new ransomware groups have joined the fray, displaying new methods and techniques to conduct their attacks, such as expanding their initial means of access and lateral movement approaches.”

Ransomware attacks are getting significantly worse, with a notable increase in the highest ransom payments observed each year. In 2024, the highest single payment reached approximately $75 million to the Dark Angels ransomware group. This represents a 96% year-over-year increase from 2023 and a staggering 335% increase from 2022.

Large enterprises and major infrastructure providers are becoming prime targets for ransomware attacks because their “deep pockets and systemic importance” make them more likely to accept high ransom payments.