The first half of 2025 saw record losses from crypto crime, surpassing previous records. Experts note that the lack of regulation and growing interest in cryptocurrencies create favorable conditions for criminals.
Dynamics of Crypto Crime Losses
According to research from TRM Labs, losses from crypto crime in the first half of 2025 have already exceeded the total losses for all of 2024. The average loss per incident was $4.3 million, with a median of $103,996.
Reasons for the Rise in Cybercrime
Bill Callahan, a former DEA agent and cryptocurrency investigator, links the rise in crime to a lack of regulation and a surge in interest in new assets. He points out that "the rapid proliferation of new crypto assets, particularly memecoins, combined with an influx of retail investors creates opportunities for criminal activity, including theft, bogus investment schemes, scams and frauds."
Need for Stricter Regulation
Hank Huang, CEO of Kronos Research, emphasizes that regulators have "swung from overreach to underreaction." He argues, "The fix isn’t more crackdowns; it’s smart, targeted regulation and finding balance to continue driving mass adoption" to create a safer environment for users.
Improving regulation and enhancing security in the cryptocurrency sector is becoming increasingly significant amid rising threats and losses. In the future, it is crucial to focus on minimizing risks for users.
