In 2024, North Korean groups stole $1.34 billion through cryptocurrency hacks—the highest amount on record—accounting for two-thirds of global crypto hacking losses. These cybercriminal activities are believed to fund North Korea's illicit ballistic missile and nuclear programs. Notably, 47 incidents were attributed to North Korea this year, including a significant theft of 4,500 bitcoins from Japan's DMM Bitcoin exchange in May. Financial Times
Global Losses from Crypto Hacks Surge
Overall, losses from cryptocurrency hacks increased by 21% in 2024, totaling $2.2 billion. This marks the fourth consecutive year with losses exceeding $1 billion. The number of hacking incidents also rose, with 303 reported cases compared to 282 in 2023. The surge in crypto heists coincides with Bitcoin's value climbing by 140% to surpass the $100,000 mark. Most stolen funds were linked to compromised private keys targeting centralized platforms. Significant hacks included the thefts of over $305 million from Japan's DMM Bitcoin in May and $235 million from India's WazirX in July. Reuters
El Salvador to Discontinue Official Bitcoin Wallet
El Salvador's official cryptocurrency wallet, Chivo, will be sold or discontinued following a deal with the International Monetary Fund (IMF). Despite this change, the government will continue to recognize Bitcoin as legal tender and plans to purchase more for its strategic reserves. The decision comes after El Salvador secured a $1.4 billion loan agreement with the IMF, which required the country to scale back its Bitcoin-related policies. This development follows El Salvador's historic move in 2021 to become the first country to adopt Bitcoin as legal tender. Reuters
Bitcoin's Value Surges Amid Political Developments
The cryptocurrency market is experiencing an unprecedented boom, with Bitcoin prices surpassing $100,000. Longtime Bitcoin holders are capitalizing on their assets, and meme coins with little intrinsic value are reaching market caps in the millions and billions. President-elect Donald Trump's administration is expected to be crypto-friendly, promising deregulation and support for the industry. His election victory has led to a sharp rise in Bitcoin's value and increased institutional interest in cryptocurrencies. However, concerns about market manipulation, lack of utility in many of these coins, and potential legal issues surrounding new crypto assets persist. New York Magazine
Anticipated Crypto Policy Changes in U.S. States
With Bitcoin's significant growth in 2024, reaching $100,000 and gaining new legitimacy with the approval of Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission, there is an anticipated push for U.S. states to adopt more crypto-friendly policies in 2025. Proponents argue that Bitcoin is a valuable hedge against inflation and that greater government investment will stabilize its price. However, critics caution that Bitcoin is highly speculative, with unpredictable future returns. Some states have already introduced legislation to authorize such investments, and more may follow suit as they adapt to the growing influence of the crypto sector.
