The first half of 2025 has become the worst period on record for crypto security, with losses surpassing $2.1 billion across 75 major hacks, according to a new report from blockchain intelligence firm TRM Labs. The majority of the thefts have been driven by private key exploits and front-end attacks, representing an alarming shift in attack sophistication and scale.
80% of Losses Tied to Infrastructure Attacks
TRM Labs revealed that over 80% of the stolen funds came from infrastructure-level exploits, averaging 10x the impact of other attack vectors. These breaches often target the technical backbone of crypto systems, such as:
- Seed phrase or private key theft
- Front-end protocol compromises, misleading users into interacting with spoofed or manipulated interfaces
“These methods exploit foundational weaknesses and are often amplified by advanced social engineering,” the report noted.
Protocol-Level Vulnerabilities Still a Concern
While infrastructure hacks dominated, protocol-based exploits—like flash loan manipulation and re-entrancy bugs—still accounted for 12% of total losses. These attacks exploit flaws in smart contracts or protocol logic and remain a persistent threat to DeFi systems.
State-Sponsored Hacks Lead the Charge
The single largest contributor to crypto losses this year was North Korea’s $1.5 billion hack of Bybit, a Dubai-based exchange, in February 2025. This one attack accounted for nearly 70% of total losses and pushed the average hack size to $30 million, double that of 2024.
Other geopolitically charged attacks include:
- Predatory Sparrow (Gonjeshke Darande), linked to Israel, which exploited Iran’s largest exchange Nobitex on June 18, adding $100 million to the tally.
“H1 2025 marks a pivotal shift: hacking is no longer just criminal—it’s increasingly geopolitical,” TRM Labs warned.
Security Breakdown and What’s Needed Next
With losses now 10% higher than the previous record set in 2022, and already matching the entire total of 2024, the crypto sector is at a critical inflection point. TRM Labs recommends a multi-layered defense strategy that includes:
- Cold storage for user funds
- Multifactor authentication
- Regular protocol audits
- Enhanced insider threat monitoring
- Social engineering countermeasures
It also emphasizes the urgent need for global coordination across law enforcement, intelligence, and blockchain analytics firms.
“This is a stark call to action,” TRM Labs concluded. “The industry must prepare for not just cybercrime, but covert statecraft.”
Final Thoughts
2025 is redefining the crypto threat landscape, with state-backed actors and infrastructure-level breaches driving record losses. Only through collaborative global defense strategies can the sector protect against this evolving digital arms race.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.