Crypto theft tops $1.7B in Q1 2025 as hacks surge
Cryptocurrency-related thefts have seen a sharp rise in the first quarter of 2025, with over $1.77 billion stolen in various incidents, according to Finbold’s Q1 2025 Cryptocurrency Market Report.
The data was compiled using figures from blockchain security firm SlowMist and paints a troubling picture for digital asset security just three months into the year.
A single attack accounted for the significant proportion of the losses to date. In February, an unknown attacker breached a cold wallet belonging to the cryptocurrency exchange Bybit, making off with approximately $1.5 billion in Ethereum. That one incident alone represents nearly 85% of the total value stolen in Q1, exceeding the combined losses from the first half of 2024.
If the trend continues, 2025 may outpace previous years in the value of thefts, including 2023 and 2024, which saw quarterly losses of $452 million and $1.38 billion, respectively.
Political controversy tied to $100M rug pull
Another incident in Q1 that drew significant attention – although smaller in scale – was the collapse of the Libra (LIBRA) project, which lost around $100 million. The controversy stemmed from Argentinian President Javier Milei’s public endorsement of the cryptocurrency in its early days. While there’s no evidence linking him directly to the scam, his ongoing support was the source of industry speculation.
Barstool Sports founder Dave Portnoy, who also promoted the token, reportedly lost more than $5 million when the coin’s value collapsed.
Backdoor access and contract loopholes
Other attacks in the sector, though less dramatic, further highlighted vulnerabilities in cryptocurrency platforms.
In February, Hong Kong-based neobank Infini lost $50 million after an attacker exploited admin privileges that had been retained by a developer involved in the platform’s smart contract creation. The funds were laundered through the cryptocurrency mixer Tornado Cash.
Two additional hacks targeted smart contract flaws. Abracadabra Money suffered a $13 million loss in late March due to an exploit in its contract logic. Earlier that month, zkLend lost around $9.6 million after an attacker used a rounding error to drain 3,600 ETH from its systems.
Total impact likely higher than reported
While the $1.77 billion figure is already significant, analysts believe the actual number may be higher. Many attacks go unreported or organisations fail to disclose the full extent of damage.
“The $1.77 billion reported in cryptohacking incidents during Q1 2025 only reflects publicly known cases,” said Finbold researchers, Jordan Major and Diana Paluteder, in the report.
If the pace of losses holds, 2025 could see more than $7 billion in cryptocurrency theft – more than triple last year’s total, making 2025 the most damaging year for the sector to date.
Staying safe amid rising cryptocurrency hacks
With cryptocurrency-related hacks already exceeding $1.7 billion in the first quarter of 2025, users are reminded to strengthen their digital defences. Although blockchain technology offers robust protections by design, individual wallets and access points remain vulnerable to theft, scams, and phishing attacks.
Trajan King, CFO of cryptocurrency shopping platform Zellix, published five methods users can take to improve wallet security:
- Use a VPN for transactions – Encrypts data and masks IP addresses to reduce exposure to phishing, DNS leaks, and malware during activity.
- Enable two-factor authentication (2FA) – Adds an extra verification step that helps prevent unauthorised account access.
- Secure your seed phrase offline – Store your recovery phrase in a metal wallet or encrypted physical format, rather than keeping it digitally-accessible.
- Consider cold storage – Keep private keys and cryptocurrency assets offline to reduce the risk of online hacks.
- Choose the right wallet for your needs – Hardware wallets offer better security for long-term holdings, while software wallets are more suited for frequent use but require regular updates.
- Update regularly – Keep wallets, devices, and software patched to protect against known vulnerabilities.
While no system is immune to attacks, following best practice can minimise the risk of personal loss as high-profile breaches and scams continue to affect the cryptocurrency ecosystem.
(Photo by Unsplash)
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