The first half of 2025 saw crypto investors lose over $2.1 billion due to hacking attacks, marking the worst half-year on record.
First Half of 2025: Record Losses
Analysts report that approximately 80% of those losses came from infrastructure attacks, including private key theft and front-end protocol manipulation. These methods often prey on human error or technical vulnerabilities, delivering significantly higher payouts per incident compared to typical smart contract exploits.
State Actors Take the Lead
A major portion of these thefts—around $1.6 billion—was traced back to North Korea-linked hacking groups, notably Lazarus. The largest single incident was the $1.5 billion Bybit exchange hack in February, making it one of the costliest breaches in crypto history. This surge in high-value hacks increased the average theft to $30 million, up from $15 million in early 2024.
Protocol Vulnerabilities Remain Relevant
Although infrastructure attacks dominate, protocol-level vulnerabilities—like flash loans and re-entrancy exploits—still accounted for around 12% of total losses. While less frequent, these remain a persistent threat and highlight the need for constant code audits and security innovation in DeFi.
The first half of 2025 marks a turning point in crypto security. Infrastructure attacks are now the top threat, and without urgent improvements, even greater losses could follow.
