Cybersecurity firm Hacken’s 2024 Web3 Security Report revealed that theft of private crypto keys is the top threat to crypto investors. According to the report, $1.7 billion worth of crypto assets were lost due to private key theft in 2024.
Increase in Private Key Theft
Hacken noted that private key theft is much more common compared to smart contract attacks. In 2024, private key-related breaches accounted for almost two-thirds of total crypto theft losses, up from 50% in 2023.
The main reasons for the theft of private keys include using insecure management platforms, being deceived by social engineering campaigns, insecure backup of data, and vulnerabilities in single-signature crypto wallets.
Biggest Attack: WazirX Hack
According to the report, the biggest attack in 2024 was the hack of the centralized Indian crypto exchange WazirX. In this attack, $230 million worth of digital assets were stolen. Although WazirX used a 6-signature Gnosis Safe multi-signature wallet, the attacker manipulated the system to obtain the necessary signatures and steal the funds.
“Despite using a strong multiple security system, WazirX was breached due to unauthorized fund movements,” Hacken said.
Private keys are strings of letters, words, and numbers created by crypto wallets and used to authorize transactions and prove ownership. They encrypt data and assets, preventing them from being stolen.
Hacken suggested that crypto investors be more careful in private key management and increase security measures to ensure their safety. Additionally, raising awareness against social engineering attacks was emphasized as an important step.
Precautions for the Future
Industry experts state that the use of multi-signature wallets should be expanded and users should adopt secure backup methods to ensure private key security. Additionally, it is critical that vulnerabilities are constantly audited and updated.
As a result, it seems that the biggest threat in the crypto world in 2024 is private key theft. Investors should take the necessary precautions and follow constantly updated security protocols to ensure the security of their assets.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
