Cryptocurrency hackers stole more than $1.38 billion in the first half of 2024, more than doubling the $657 million lost during the same period in 2023, according to a report released on July 5 by blockchain analytics firm TRM Labs. The surge in stolen funds coincided with one of the most consequential days in crypto history, as the defunct Mt. Gox exchange began distributing approximately $9 billion in recovered assets to creditors who have waited over a decade for restitution.
TL;DR
- Crypto hacking losses reached $1.38 billion in H1 2024, more than double the $657 million stolen in H1 2023
- Japanese exchange DMM Bitcoin suffered the largest single hack, losing approximately $308 million in Bitcoin
- TRM Labs attributes the increase to rising token values and a small number of large-scale attacks
- Mt. Gox began creditor repayments on July 5, moving 47,229 BTC worth $2.7 billion to exchange wallets
- Bitcoin fell below $55,000 as the broader crypto market shed $170 billion in 24 hours
TRM Labs Report Reveals Alarming Trend
TRM Labs, a leading blockchain intelligence firm, published findings on July 5 showing that cybercriminals had stolen over $1.38 billion worth of cryptocurrency between January 1 and June 24, 2024. The figure represents a dramatic increase from the $657 million lost during the comparable period in 2023, with the median theft size being roughly one-and-a-half times larger than the previous year.
Ari Redbord, global head of policy at TRM Labs, explained that the surge is not driven by fundamental weaknesses in cryptocurrency security infrastructure but rather by the significant appreciation in token values. Bitcoin reached an all-time high of $73,803 in March 2024, meaning that the same volume of stolen assets translates to substantially higher dollar losses. Higher prices also increase the financial incentive for attackers to target cryptocurrency services.
DMM Bitcoin Hack Leads 2024 Losses
Among the largest individual incidents tracked in the first half of 2024 was the theft of approximately $308 million worth of Bitcoin from Japanese cryptocurrency exchange DMM Bitcoin. The company described the breach as an unauthorized leak from its digital asset holdings. The scale of the DMM Bitcoin hack highlights the ongoing vulnerability of centralized exchanges to sophisticated cyberattacks, despite years of industry investment in security infrastructure.
The TRM Labs report noted that a small number of large attacks accounted for a disproportionate share of total losses, echoing patterns observed in previous years. In 2022, stolen cryptocurrency volumes reached approximately $900 million, driven largely by the more than $600 million stolen from the Ronin Network linked to the Axie Infinity game — an attack that United States authorities attributed to North Korean state-sponsored hackers.
Mt. Gox Repayments Begin After Decade-Long Wait
On the same day the TRM Labs report was released, the cryptocurrency world witnessed another momentous event: the commencement of Mt. Gox creditor repayments. The rehabilitation trustee confirmed that repayments in Bitcoin and Bitcoin Cash had begun on July 5, 2024, marking the first tangible step toward resolving one of the longest-running bankruptcy proceedings in cryptocurrency history.
On the evening of July 4, blockchain analytics firms tracked approximately 47,229 Bitcoin worth roughly $2.7 billion being moved from Mt. Gox cold storage wallets to addresses connected to Japanese exchanges including Bitbank and SBI VC Trade. The total distribution plan encompasses approximately $9 billion in Bitcoin, Bitcoin Cash, and fiat currency to creditors who lost funds when the exchange collapsed in February 2014 after suffering a devastating hack that resulted in the loss of 850,000 Bitcoin.
At the time of its collapse, Mt. Gox was the largest cryptocurrency exchange in the world, handling approximately 70% of all global Bitcoin transactions. The repayment process is expected to unfold over an extended period, as the trustee works through the complex logistics of distributing assets to thousands of creditors worldwide.
Market Reaction and Mining Implications
The combination of hacking reports and Mt. Gox repayments sent shockwaves through the cryptocurrency market. Bitcoin fell over 6% on July 5, trading near $54,000 — its lowest level since February 2024. Ethereum declined 9.3% to approximately $2,872, with well-known gold advocate Peter Schiff predicting a further crash to $1,500. The broader cryptocurrency market shed more than $170 billion in market capitalization within 24 hours.
For Bitcoin miners, the price decline has direct implications for operational profitability. On the same day, the network completed a 5% difficulty adjustment downward to 79.50 terahashes, a quarterly low that reflects miners shutting off unprofitable rigs. According to F2Pool estimates, only ASIC mining equipment with energy efficiency of 26 watts per terahash or better can operate profitably at current prices, assuming standard electricity costs of $0.07 per kilowatt-hour.
North Korean Hackers Remain a Persistent Threat
The United Nations has repeatedly accused North Korea of using cyberattacks against cryptocurrency targets to fund its nuclear weapons and missile programs. The TRM Labs data suggests that nation-state actors continue to represent a significant threat to the digital asset ecosystem, particularly as rising cryptocurrency valuations make attacks more lucrative. While North Korea has denied involvement in hacking activities, the pattern of sophisticated attacks linked to the country has remained consistent across multiple years of data.
Why This Matters
The convergence of the TRM Labs hacking report and the Mt. Gox repayment commencement on July 5 underscores a fundamental tension in the cryptocurrency ecosystem: as the industry matures and asset values grow, the stakes of security failures increase proportionally. The doubling of hacking losses year-over-year despite improvements in security infrastructure demonstrates that higher token prices create a larger target for attackers. Meanwhile, the Mt. Gox repayments, while a positive development for long-suffering creditors, introduce billions in previously locked Bitcoin back into circulation, creating near-term selling pressure that affects mining profitability and market sentiment alike. For the mining sector specifically, the combination of lower Bitcoin prices and the ongoing distribution of Mt. Gox assets creates a challenging environment that is likely to accelerate industry consolidation.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk due to market volatility. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
$1.4B stolen and DMM Bitcoin alone was $308M of that. one hack, nearly a quarter of all losses
and TRM said it was only a handful of large attacks too. concentrated risk, not a widespread problem
one hack being nearly 25% of all losses tells you this is not a systemic issue. its a few weak protocols getting hit repeatedly
25% from one attack and people still wonder why insurance products for DeFi are gaining traction. the concentration risk is the real story
mt gox creditors waited 10 years just to get their BTC when the market was crashing below $55k. brutal timing
DMM Bitcoin losing $308M as a Japanese exchange. their regulatory framework is supposed to be strict. makes you wonder about the smaller unregulated exchanges.
japanese exchanges are regulated but that doesnt mean theyre secure. DMM Bitcoin got hit because of key management not lack of compliance paperwork