The 2024 Web3 Security Report by cybersecurity firm Hacken reveals that the theft of private keys poses the most significant threat to cryptocurrency investors. The report highlights that in 2024, losses due to private key theft amounted to $1.7 billion in cryptocurrency assets.

Increase in Private Key Theft

Hacken points out that private key theft is far more prevalent compared to smart contract attacks. In 2024, incidents related to private keys accounted for nearly two-thirds of total cryptocurrency theft losses, an increase from 50% in 2023.

The primary causes of private key theft include the use of insecure management platforms, falling prey to social engineering campaigns, unsafe data backups, and vulnerabilities in single-signature cryptocurrency wallets.

Largest Attack: WazirX Hack

According to the report, the most significant attack in 2024 was a hack on the Indian centralized cryptocurrency exchange WazirX. This attack resulted in the theft of digital assets worth $230 million. Despite WazirX utilizing a six-signature Gnosis Safe multi-signature wallet, the attacker manipulated the system to obtain the necessary signatures and steal the funds.

“WazirX suffered...