Crypto Crimes Could Hit $4 Billion by 2025

In the first half of 2025, crypto thieves have stolen a staggering $2.17 billion in digital assets, already surpassing the total losses of the previous year, according to Chainalysis. If this trend continues, losses may hit $4 billion by December. A primary contributor to this surge is the $1.5 billion hack of the Bybit exchange in March, attributed to North Korean state actors. This incident alone accounts for nearly 70% of all service-related losses and is the largest crypto heist documented to date, surpassing the Ronin bridge exploit from 2022. Alarmingly, attacks on individuals now make up about 23% of stolen funds, almost doubling over the last two years. Cybercriminals are using advanced social engineering, including deepfake videos and one-click malware attacks, to infiltrate personal wallets, leading to about $8.5 billion currently held in unrecovered crypto. Furthermore, physical threats to crypto holders are increasing, with so-called "wrench attacks"—incidents involving violence or kidnapping to extract private keys—set to potentially double the annual record. The most affected regions are the United States, Germany, and Russia, while Eastern Europe and parts of the Middle East are seeing rapid increases in such crimes. Criminals are also paying exorbitant fees to launder their gains, with the average cost now 14.5 times the typical transaction fee as they try to evade blockchain tracking. Chainalysis emphasizes that 2025 is a pivotal year for blockchain security and crypto crime. The ability to track stolen funds in real-time could lead to changes in the crime landscape; however, the evolution of attacks is speeding up. To mitigate these threats, the acceleration of protective measures, including multi-factor authentication and enhanced detection systems, is critical in the upcoming months. Disclaimer: The Block is an independent media outlet providing news and research. As of November 2023, Foresight Ventures is a primary investor in The Block, which operates independently to ensure objective and timely industry reporting. This article is for informational purposes only and should not be considered legal or financial advice.