The first quarter of 2025 has seen a staggering increase in crypto theft, with hackers making away with a total of $1.67 billion worth of digital assets. This represents a 303% rise compared to the previous quarter, highlighting the growing threat posed by cybercriminals in the blockchain space.
One of the major incidents that contributed significantly to this figure was the $1.45 billion hack of Bybit, accounting for two-thirds of the total amount stolen in Q1. However, it’s important to note that CertiK’s analysis of 197 hacking incidents also revealed that Ethereum was the most targeted network, with 98 reported breaches.
Following the Bybit hack, two other notable incidents included the $71 million Phemex heist in January and the $49.5 million exploit suffered by crypto neobank Infini. These attacks underscore the vulnerabilities present in the crypto ecosystem, despite ongoing efforts to enhance security measures.
Phishing attacks remain the most common method used by hackers, with 81 incidents reported in Q1. This technique involves stealing a victim’s credentials to gain unauthorized access to personal accounts. In addition, there were 15 incidents of private key compromise, highlighting the importance of safeguarding sensitive information.
Interestingly, only 0.38% of the stolen funds in Q1 have been recovered, a significant decrease compared to the previous quarter’s recovery rate of 42.09%. This means that the adjusted loss for Q1 is much higher, with February seeing no funds returned at all.
Overall, the rise in crypto theft highlights the pressing need for robust security measures within the blockchain industry. As the adoption of digital assets continues to grow, it is crucial for stakeholders to prioritize cybersecurity to protect investors and maintain trust in the ecosystem.