In the first quarter of this year, hackers stole $542.7 million worth of cryptocurrencies, marking a 42% increase from the same period in 2023, as reported by Merkle Science, a cryptocurrency risk and intelligence platform.

Merkle Science indicates that 2024 is on track to be a record-setting year for crypto hacks. Hackers are becoming increasingly sophisticated, expanding their targets beyond smart contracts to exploit vulnerabilities in private key management and insecure storage practices. Phishing attacks remain a significant threat, with many crypto investors falling prey to fraudulent emails and addresses mimicking legitimate ones.

The report highlights a shift in hacker strategies as smart contracts become more secure, leading hackers to seek easier targets. In 2022, smart contract vulnerabilities were heavily exploited, resulting in $2.6 billion worth of stolen digital tokens. By the end of 2023, approximately 55% of hacked crypto was attributed to private key leaks.

This year, hackers have intensified their attacks on cryptocurrency exchanges and wallets, coinciding with rising digital asset prices. According to CoinMarketCap, the total market capitalization of cryptocurrencies has surged by 54% year-to-date, with Bitcoin and Ethereum reaching all-time highs.