1. Increase in Hacking and Ransomware
2. Crypto Kidnapping Case in Malaysia
3. North Korean Cyber Network Exposed

In 2024, there has been an increase in hacking and ransomware activities within the cryptocurrency sphere, despite an overall decline in illegal transactions.

Increase in Hacking and Ransomware

In 2024, the cryptocurrency market experienced significant changes in illicit activities. According to a report by Chainalysis, overall illegal transactions declined by 19.6% year-to-date. However, hacking and ransomware activities surged. Crypto hacking, which saw a drop in 2023, made a strong comeback in 2024. The cumulative value of stolen crypto assets by the end of July exceeded $1.58 billion, an 84% increase compared to the same period in 2023. The average value per hack rose by 79.5%, reaching $10.6 million. Hackers have refocused on centralized exchanges (CEXs) after years of targeting decentralized platforms. One of the largest incidents involved the Japanese exchange DMM, which lost $305 million in Bitcoin due to a private key hack. This incident accounted for 19% of the total value stolen in crypto hacks for 2024.

Crypto Kidnapping Case in Malaysia

Six Malaysians, including a married couple, have been charged with kidnapping a Chinese national and demanding a ransom of 4.44 million Malaysian ringgits ($1 million in Tether’s USDT stablecoin). The abduction occurred at an expressway exit between Kuala Lumpur and Putrajaya. The accused pleaded not guilty, but the judge denied bail. The next court hearing is set for October 8. Authorities are also searching for four additional suspects who are believed to be part of an 18-person gang. Selangor police chief confirmed that four other gang members were killed in separate encounters. Convictions under the Kidnapping Act could result in prison sentences ranging from 30 to 40 years and caning.

North Korean Cyber Network Exposed

Blockchain investigator ZachXBT has uncovered evidence of a sophisticated network of North Korean developers who are earning up to $500,000 per month working for major crypto projects. According to ZachXBT, a single entity in Asia employs at least 21 workers across more than 25 crypto projects. The investigation began after a team contacted ZachXBT for help investigating the theft of $1.3 million from their treasury. The developers, using fake identities, were North Korean IT workers. The stolen funds were then laundered through a series of transactions. Additional findings revealed connections to sanctions-listed individuals and Russian IP overlaps.

Hacks, ransomware, and other cybercrime activities continue to pose serious threats to the crypto market. Market participants must adopt additional security measures to protect their assets.