How Hackers Stole Over $2 Billion in Cryptocurrency in 2024: Techniques and Prevention Tips

Cryptocurrency has become a prime target for hackers due to its decentralized and irreversible nature, along with the anonymity of certain coins like Monero. 

In 2024 alone, cybercriminals exploited various vulnerabilities to steal over $2 billion in crypto assets. 

Understanding these techniques and implementing preventative measures can help users safeguard their digital wealth.

Common Techniques Used by Hackers

1. Phishing Attacks

    Phishing remains a popular method for stealing cryptocurrency. 

Hackers create counterfeit versions of trusted crypto exchanges, such as Coinbase, to deceive users into entering their login credentials. Tools like "PyPhisher" are used to host these fake login pages, mimicking legitimate URLs like “coinbase.com” to mislead unsuspecting victims. Once credentials are stolen, attackers gain access to users’ wallets, transferring funds into their accounts.

Prevention Tip: Phishing Attacks

• Always verify website URLs before entering sensitive information.
• Bookmark trusted exchange websites to avoid accidental clicks on fraudulent links.

2. Crypto Clipper

Crypto clippers are malicious programs that monitor clipboard activity on a user’s device. When a wallet address is copied, the software replaces it with the attacker’s wallet address. Victims unknowingly send funds to the wrong address, resulting in irreversible losses.

Risk Example: 

A user copying a wallet address to send $5,000 worth of Bitcoin unknowingly sends it to the attacker’s address instead.

Prevention Tip: 

Double-check wallet addresses before confirming transactions. Use security software to detect and remove clipboard-monitoring malware.

3. Cryptojacking

Cryptojacking involves the use of malware to exploit a victim’s CPU or GPU for cryptocurrency mining. The malware dynamically adjusts resource usage to avoid detection by tools like Task Manager, making it harder for users to notice performance slowdowns.

Infection Sources:

• Downloading cracked software.
• Visiting malicious websites embedded with cryptojacking scripts.

Prevention Tip: 

Avoid downloading pirated software, and install trusted antivirus programs to detect unauthorized mining activities.

4. Cracking Crypto Wallets

Hackers target both hot and cold wallets to steal cryptocurrency. While hot wallets are connected to the internet and more vulnerable to attacks, even cold wallets can be exploited if hardware vulnerabilities exist.

Example: 

In 2024, hackers exploited a RAM vulnerability in the Trezor Model T hardware wallet, allowing them to extract sensitive data. Trezor addressed this issue through a firmware update.

Prevention Tip: 

Regularly update wallet firmware and avoid sharing private keys or recovery phrases.

5. Password Stealers

Hackers use tools like LaZagne and Mimikatz to decrypt stored passwords from web browsers. This technique targets crypto wallets integrated into browsers like Chrome or Firefox. Additionally, keyloggers track every keystroke, capturing sensitive information such as wallet passwords.

Prevention Tip: 

Avoid storing wallet credentials in browsers. Use hardware-based authentication or secure password managers for enhanced protection.

6. Hacking Crypto Exchanges

Crypto exchanges are lucrative targets for hackers due to the vast number of wallets they manage. 

Binance: Hacking Crypto Exchanges

In one of the most notorious crypto trading hacks, cybercriminals breached the Binance exchange in October 2022, stealing $570 million. The hackers exploited a vulnerability in the BSC Token Hub cross-chain bridge, enabling them to generate additional Binance coins and drain all available funds.

Coincheck: Hacking Crypto Exchanges

The Coincheck hack, one of the earliest major crypto exchange breaches, occurred in January 2018 in Tokyo. Hackers targeted a weakness in the exchange’s hot wallet, resulting in the theft of $534 million worth of NEM coins. Demonstrating a commitment to its users, Coincheck set a precedent by using its capital to fully reimburse clients who had their funds stolen.

Prevention Tip: 

Store funds in personal wallets instead of leaving them on exchanges. Opt for exchanges with a proven track record of robust security measures.

Preventative Measures:

While hackers continually evolve their techniques, users can take 

7. Fake Token or Smart Contract Scams

Hackers create malicious tokens or exploit vulnerabilities in smart contracts to trick users into sending funds. 

These tokens often mimic legitimate cryptocurrencies but contain hidden code that allows attackers to drain wallets.

Example: Airdropped tokens requiring users to connect their wallets for redemption, only to have their assets stolen once connected.

Prevention Tip: 

Verify the authenticity of tokens before interacting with them and avoid connecting wallets to unknown smart contracts.

8. Social Engineering Attacks

Hackers manipulate individuals through social engineering tactics. 

Examples include: Posing as customer support representatives for exchanges.

Gaining trust in online communities to extract sensitive information

Prevention Tip: Never share private keys or recovery phrases, even with those claiming to be support staff.

9. SIM-Swapping Attacks

In SIM-swapping, hackers convince telecom providers to transfer a victim’s phone number to their SIM card. This grants access to SMS-based 2FA codes, enabling wallet breaches.

Prevention Tip: 

Use app-based 2FA like Google Authenticator instead of SMS-based verification.

10. Exploiting Decentralized Finance (DeFi) Protocols

DeFi platforms are frequent targets due to vulnerabilities in their smart contracts. 

In 2024, hackers exploited coding errors in protocols to drain funds or manipulate token prices through flash loan attacks.

Prevention Tip: Choose DeFi platforms with audited smart contracts and avoid investing in projects with unclear security measures.

11. Rug Pull Scams

In a rug pull, developers create a cryptocurrency or DeFi project, attract investors, and then vanish with the funds. These scams are common in the decentralized finance ecosystem.

How it works?
Scammers promote a new project, coin, or non-fungible token (NFT). 

They use social media to create hype and attract investors. 

They make promises of high returns or groundbreaking technologies 
Once they have enough funds, the developers withdraw all the money and disappear. 

Investors are left with worthless tokens or coins 

Example: Promising high returns on new tokens, only for the token’s liquidity to be drained by its creators.

Prevention Tip: Research projects thoroughly before investing and look for signs of legitimacy, such as reputable team members and audits.

12. Malware-Embedded Wallet Apps

Hackers distribute fake wallet applications embedded with malware. These apps steal sensitive data, such as private keys, or allow unauthorized access to wallets.

Prevention Tip: Download wallet apps only from official sources like the App Store or Google Play. 

Verify app authenticity through reviews and developer credentials.

Preventative Measures

proactive steps to secure their cryptocurrency:

1. Enable Two-Factor Authentication (2FA): Use apps like Google Authenticator instead of SMS-based 2FA, which is more vulnerable to SIM-swapping attacks.

2. Diversify Wallets: Avoid putting all your funds in a single wallet or exchange. Spread your assets across multiple wallets for enhanced security.

3. Secure Recovery Phrases: Store recovery phrases offline or in secure password managers. Avoid keeping them in digital formats that could be hacked.

4. Avoid Risky Behaviors:

Be cautious of fake ads or phishing links on search engines.

Avoid downloading cracked software or visiting suspicious websites.

5. Verify Platforms: Use trusted websites or services to check for fraudulent crypto exchanges and confirm their legitimacy.

Hackers exploited advanced techniques like phishing, crypto clippers, cryptojacking, and exchange breaches to steal over $2 billion[in 2024] in cryptocurrency. 

By understanding these methods and adopting robust security practices, users can significantly reduce the risk of falling victim to crypto theft. Staying vigilant and prioritizing cybersecurity is essentia

l to safeguarding digital assets in an increasingly hostile online environment.

Here are some multiple-choice questions (MCQs) :

1. What makes cryptocurrency an attractive target for hackers?

A) It is fully regulated by governments

B) Transactions are irreversible and anonymous

C) All transactions require identity verification

D) Cryptocurrency has no real-world value

Answer: B) Transactions are irreversible and anonymous

2. How do phishing attacks work in cryptocurrency theft?

A) Hackers break into wallets using brute force

B) Hackers create fake exchange websites to steal user credentials

C) Hackers mine cryptocurrency on victims’ computers

D) Hackers exploit smart contracts to gain access to wallets

Answer: B) Hackers create fake exchange websites to steal user credentials

3. What is the main function of crypto clippers?

A) Replaces copied wallet addresses with the attacker’s address

B) Mines cryptocurrency using victim’s computer resources

C) Cracks wallet passwords stored in browsers

D) Monitors blockchain transactions for vulnerabilities

Answer: A) Replaces copied wallet addresses with the attacker’s address

4. How does cryptojacking work?

A) Hackers steal private keys from online wallets

B) Malware mines cryptocurrency using a victim’s CPU/GPU without their knowledge

C) Hackers replace legitimate wallet addresses in transactions

D) Attackers gain access to exchanges and transfer funds to their accounts

Answer: B) Malware mines cryptocurrency using a victim’s CPU/GPU without their knowledge

5. What vulnerability was exploited in the Trezor Model T hardware wallet?

A) Private keys stored in the cloud

B) RAM exploitation to extract sensitive data

C) Unsecured two-factor authentication

D) Weak password encryption

Answer: B) RAM exploitation to extract sensitive data

6. What is a common way hackers steal stored passwords for crypto wallets?

A) By using keyloggers and password-decrypting tools

B) By tracking blockchain transactions

C) By mining data from public forums

D) By brute-forcing all possible password combinations

Answer: A) By using keyloggers and password-decrypting tools

7. What is a rug pull scam?

A) Hackers exploit a vulnerability in the blockchain

B) Developers launch a fake project, attract investors, and disappear with funds

C) Malware that steals private keys when a wallet is opened

D) Fake hardware wallets used to steal crypto deposits

Answer: B) Developers launch a fake project, attract investors, and disappear with funds

8. How does SIM-swapping help hackers steal cryptocurrency?

A) It gives hackers access to a victim’s phone number and 2FA codes

B) It allows hackers to remotely control a victim’s wallet

C) It replaces the user’s crypto wallet with a fake version

D) It sends phishing emails with fake 2FA verification requests

Answer: A) It gives hackers access to a victim’s phone number and 2FA codes

9. What should users do to protect their cryptocurrency from phishing attacks?

A) Use multiple accounts with different passwords

B) Verify URLs and bookmark official exchange sites

C) Never use two-factor authentication

D) Keep private keys stored in a digital document

Answer: B) Verify URLs and bookmark official exchange sites

10. What is a flash loan attack in DeFi?

A) A technique where hackers manipulate token prices and drain liquidity

B) A method to quickly withdraw funds from an exchange

C) A scam where hackers promise high returns on deposits

D) A technique to bypass exchange withdrawal limits

Answer: A) A technique where hackers manipulate token prices and drain liquidity