Centralized Exchanges Reclaimed by Hackers as Ransomware Payments Soar in 2024: Chainalysis

While overall illicit transactions have decreased since last year, there has been a notable rise in – stolen funds and ransomware. The amount of stolen funds in crypto scams has almost doubled from $857 million to $1.58 billion by late July.

Ransomware payments have also grown, with mid-year 2023 figures at $449.1 million compared to $459.8 million this year. Such a trend essentially pointed to the possibility of a record-setting year for ransomware.

Criminals Shift Focus Back to Centralized Exchanges

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

Despite this significant rise in stolen value, the number of hacking incidents in 2024 has only slightly surpassed those of 2023, with a modest 2.76% year-over-year increase. Meanwhile, the average value compromised per incident has surged by 79.46%, climbing 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 peak 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 breach these exchanges. In fact, the UN has reported that over 4,000 North Koreans are now employed by Western tech firms.

Increased Ransomware Attacks

Chainalysis has reported that ransoms paid have reached $459.8 million, putting 2024 on pace to be the worst year on record. According to Kiva Consulting’s general counsel, Andrew Davis, ransomware activity has remained fairly consistent despite the disruptions caused by LockBit and ALPHV/BlackCat.

“Whether it be former affiliates of these well-known threat actor operations, or new upstarts, a large number of new ransomware groups have joined the fray, displaying new methods and techniques to carry out their attacks such as expansion in their means for initial access and lateral movement approaches.”

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

Larger companies and key infrastructure providers are becoming prime targets for ransomware attacks, as their “deep pockets and systemic importance” make them more likely to agree to large ransom payments.