In the first half of 2025, crypto losses reached a record $2.1 billion, driven primarily by exploits targeting crypto seed phrases (private keys) and front-end protocol hacks, according to blockchain intelligence firm TRM Labs.
These infrastructure attacks accounted for over 80% of the total stolen funds across 75 hacks, with each infrastructure attack stealing on average 10 times more than other types of attacks. Such attacks involve hijacking wallet seed phrases or exploiting user-facing parts of crypto protocols, often amplified by social engineering tactics that manipulate victims into revealing sensitive information.
Additionally, protocol exploits and re-entrancy attacks contributed to about 12% of the total losses by exploiting vulnerabilities in smart contracts or blockchain core logic to extract funds or disrupt systems.
A significant event was the $1.5 billion hack of Dubai-based exchange Bybit in February 2025, attributed to North Korean state actors, which alone accounted for nearly 70% of the total losses and pushed the average hack size to $30 million—double the average in the first half of 2024. North Korean-linked groups were responsible for about $1.6 billion of the total stolen, highlighting the increasing role of this type of cybercrime in the crypto space.
TRM Labs emphasized the urgent need for enhanced security measures such as multifactor authentication, cold storage, frequent audits, and advanced social engineering defenses. They also called for multifaceted collaboration between global law enforcement, financial intelligence units, and blockchain intelligence firms to combat these escalating threats effectively.
The record losses in 2025 underscore a concentrated and evolving threat landscape targeting the foundational infrastructure of cryptocurrency systems, necessitating stronger security protocols and user education to safeguard digital assets.
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