Crypto criminals are shifting their focus to centralized exchanges, China’s report shows

Cryptocriminals are targeting centralized exchanges, spending more than $1.5 billion in the first half of the year, according to a mid-year report by blockchain analysis firm Chinalysis.

It marks a major shift after four years of increased focus on decentralized platforms. The report attributes this change to the growing sophistication of attackers, who are now using advanced social engineering tactics.

Some attackers, including those linked to North Korea, have even gone so far as to apply for IT jobs at targeted companies, according to Chainalysis.

That strategy allowed them to enter centralized exchanges, which, despite their mature and robust security measures, offer potentially large payouts.

The report shows that the value of stolen crypto has increased by 84% year-on-year and reached 1.58 billion dollars. However, this figure makes the current increase even more apparent following a 50% year-over-year decline in stolen crypto during the same period last year.

Although the number of hacking incidents increased slightly by 2.76% year-on-year, the value stolen in each incident increased significantly, which increased by 79% compared to last year, which highlights the high-value targets that are currently being pursued by criminals.

Ransomware continues to be a growing threat, with total ransoms paid this year reaching $459.8 million, up from $449.1 million in the same period last year, according to Chainalysis.

The report suggests a possible link between increased ransomware activity and an increase in stolen funds, noting that organized groups, including those linked to North Korea, are behind some of the biggest heists.

These groups use sophisticated social engineering techniques to hack crypto businesses and flee the stolen assets before authorities can intervene.

Despite the increase in organized crime, the report shows a positive trend in the crypto sector.

The growth of legitimate transactions on blockchains outpaces the rise of illegal activity. Chinalysis reports a 19.6% drop in total illicit transactions from $20.9 billion to $16.7 billion as crypto usage continues to move toward mainstream adoption.

Eric Jardine, head of cybercrime research at Chinalysis, said: “It is very encouraging to see that criminal activity continues to be a declining part of the crypto ecosystem. “The growth of legitimate activity outpacing illegal activity on the chain shows the continued transition of cryptocurrencies to the mainstream.”