Crypto theft has surged in the first six months of 2024, now reaching $1.38 billion, a figure more than twice the amount stolen in 2023, according to new data from TRM, a blockchain intelligence company.

Last year, crypto criminals stole a total of $1.7 billion from unsuspecting users, but the amount stolen this year is already on track to eclipse last year's figure.

Hackers have targeted crypto users’ private keys and seed phrases to gain access to their wallets, as well as pursued attacks targeting smart contracts and flash loans. “Once a crypto wallet is compromised, it is extremely hard to retrieve funds stolen,” Vatom CEO Eric Pulier told TheStreet Crypto.

"It can be quite lucrative for criminals to spend the time and energy to trick unsuspecting users of bitcoin ATMs and gain access to their funds," Pulier added.

For example, hackers can attempt to capture transaction data by installing malware or gaining access to a person's private keys or user credentials. Bitcoin ATMs are a frequent target, with hackers installing skimming devices on them like they do conventional ATM machines. Some sophisticated hackers may even rely on remote access Trojans "to gain remote control over [bitcoin] ATMs, allowing them to manipulate transactions and steal funds," Pulier said.

Despite the high degree of crypto theft, the amount of crypto stolen has not yet surpassed the $2 billion recorded in the first half of 2022. Moreover, this year, almost three-quarters of the stolen crypto stemmed from just five incidents, indicating that crypto criminals were sweeping up large volumes of crypto in fewer attacks.

One reason for the high degree of bitcoin theft this year, TRM pointed out, was due to bitcoin's elevated price levels since the January debut of the country's first spot bitcoin exchange-traded funds (ETFs). Bitcoin ascended to new heights this year, exceeding $73,000 this spring.