Chainalysis Reveals Crypto Criminals Are Targeting Centralized Exchanges

Crypto criminals are increasingly targeting centralized exchanges, stealing over $1.5 billion in the first half of the year, according to Chainalysis.

Advanced Social Engineering

This marks a shift after four years of focusing on decentralized platforms, attributed to the growing sophistication of attackers using advanced social engineering. Some, including those linked to North Korea, have even applied for IT jobs to gain access to centralized exchanges, which, despite their robust security, offer larger rewards.

A Chainalysis report highlights an 84% increase in the value of stolen crypto, reaching $1.58 billion, following a 50% decrease last year. While the number of hacking incidents has only slightly increased, the value per incident has surged by 79%, showing a shift to higher-value targets.

Legitimacy Triumphs

Ransomware remains a threat, with total ransoms paid this year reaching $459.8 million. Organized groups, including those linked to North Korea, are behind some of the largest heists, using sophisticated techniques to breach crypto businesses and launder stolen assets.

Despite the rise in crime, legitimate blockchain transactions are growing faster than illicit activities. Chainalysis reported a 19.6% decrease in aggregate illicit transactions, indicating a shift toward mainstream adoption of cryptocurrency.