Jakarta, Indonesia Sentinel — Digital fraud is becoming an increasingly alarming phenomenon, with the number of victims and the financial losses skyrocketing. One of the most prevalent forms of fraud is the theft of cryptocurrency, a crime that has surged by 21% in 2024, reaching a staggering $2.2 billion, or approximately IDR 35.7 trillion, according to a report from blockchain analysis firm Chainalysis.
In 2023, the losses from crypto theft were “only” $1.8 billion, or around IDR 29.2 trillion. The total damage caused by cryptocurrency hacks has exceeded the $1 billion mark over the past four years. Furthermore, the number of incidents has risen, from 282 cases in 2023 to 303 cases in 2024.
According to Reuters on December 20, 2024, the rise in cryptocurrency thefts is linked to the increasing price of Bitcoin this year, which has jumped by 140%. Bitcoin’s value crossed $100,000 following the victory of U.S. President-elect Donald Trump. During his campaign, Trump expressed full support for the cryptocurrency industry.
“As the digital asset market booms, the illegal use of crypto is also growing,” said Eric Jardine, a cybersecurity researcher at Chainalysis. “Combatting crypto-related violations, particularly fraud, will be one of the major challenges for the industry in the coming year,” he added.
This year’s cryptocurrency thefts have largely been driven by violations of private keys that control user access to their assets. Most of the attacks targeted centralized platforms, the report stated. Among the most prominent hacks were the theft of over $305 million from the Japanese cryptocurrency exchange DMM Bitcoin in May and the loss of $235 million from India’s WazirX in July.
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Hacks linked to North Korea more than doubled from last year, reaching a record high of $1.3 billion in 2024, according to Chainalysis. The United Nations has stated that cryptocurrencies enable North Korea to circumvent international sanctions. The Kim Jong Un regime routinely denies involvement in cyberattacks or cryptocurrency theft.
The soaring number of cryptocurrency thefts and hacks has raised alarm among investors, cybersecurity experts, and regulators alike. With the market continuing to expand, the need for robust security measures and stronger regulatory frameworks is becoming more urgent to protect digital assets from criminal activities.
(Becky)
