Legitimate activity is growing more quickly than illicit activity, but stolen funds and ransomware in particular continued to rise, with 2024 on track to be the highest-grossing ransomware year yet.
“It is highly encouraging to see that criminal activity continues to become an ever-shrinking share of the crypto ecosystem. The growth of legitimate activity outpacing that of illicit activity on-chain demonstrates the continued transition of cryptocurrencies to the mainstream. Just as with traditional financial systems, it is unlikely that illicit activity will be entirely eradicated. But advanced blockchain analysis tools, such as those provided by Chainalysis, are empowering law enforcement agencies and enterprises to counter the threat ever more effectively. This places crypto and blockchain on track to revolutionize the exchange of value, much like the internet did for the exchange of information,” said Eric Jardine, Cybercrime Research Lead at Chainalysis.
Ransomware Continues to Rise
While overall there was a decline in illicit transactions compared to the same period last year, ransomware was a notable exception. At this point last year, Chainalysis reported cumulative ransomware payments of around US$449.1 million through the end of June 2023. This year through the same period, the researchers recorded a total of US$459.8 million in ransoms paid, setting 2024 firmly on track to be the worst year on record.
Another concerning finding is the ballooning of the maximum ransom payment observed in a given year. Thus far, 2024 saw the largest single payment ever recorded at approximately US$75 million to a ransomware group known as Dark Angels. This increase in the maximum payment size signifies a 96% YoY growth from 2023 and a 335% rise compared to the maximum payment in 2022.
Bitcoin Back in Cryptocriminals’ Crosshairs
After a 50% drawdown in crypto value stolen in 2023 compared to 2022, this year has also seen a resurgence in hacking activity. The cumulative value stolen YTD in 2024 has already crested US$1.58 billion, which is around 84.4% greater than the value stolen over the same period last year. Interestingly, the number of hacking incidents in 2024 has only marginally outpaced that of 2023, rising at just 2.76% YoY. Much of the change in the value compromised, therefore, is attributable to rising asset prices, particularly Bitcoin, which accounted for 40% of the transaction volume associated with the post-hack movement of stolen funds. This also suggests that crypto thieves are ‘returning to their roots’ by targeting centralized exchanges with greater frequency rather than prioritizing DeFi protocols, which are less popular vehicles for trading BTC. Attackers, including those linked to North Korea, are leveraging increasingly sophisticated social engineering tactics, including applying for IT jobs, to steal crypto by infiltrating centralized exchanges.
Commenting on the divergence of ransomware and hacks from the overall decline in illicit on-chain activities, Jardine said, “These two types of crime are often perpetrated by organized groups that leverage sophisticated cyber infrastructure. The key to disrupting cybercrime is disrupting its supply chains, including attackers, affiliates, partners, infrastructure services providers, launderers, and cashout points. Because the operations for crypto heists and ransomware operate almost entirely on the blockchain, law enforcement armed with the right solutions can follow the money to better understand and disrupt these actors’ operations.”
Do Follow: CIO News LinkedIn Account | CIO News Facebook | CIO News Youtube | CIO News Twitter
About us:
CIO News is the premier platform dedicated to delivering the latest news, updates, and insights from the CIO industry. As a trusted source in the technology and IT sector, we provide a comprehensive resource for executives and professionals seeking to stay informed and ahead of the curve. With a focus on cutting-edge developments and trends, CIO News serves as your go-to destination for staying abreast of the rapidly evolving landscape of technology and IT. Founded in June 2020, CIO News has rapidly evolved with ambitious growth plans to expand globally, targeting markets in the Middle East & Africa, ASEAN, USA, and the UK.
CIO News is a proprietary of Mercadeo Multiventures Pvt Ltd.
