The first quarter of 2025 brought major changes to the crypto world with new regulations like the U.S. Strategic Cryptocurrency Reserve and the SEC’s Crypto Task Force. The EU also made progress with its MiCA rules, aiming to make crypto safer and more regulated.
But despite these efforts, crypto hacks and scams skyrocketed, causing massive losses and raising concerns about security across the industry.
Over $1.6B Stolen In 197 incidents!
According to CertiK’s Web3 security quarterly report, Hack3d, for Q1 2025, over $1.67 billion was stolen across 197 incidents—a massive 303.38% increase in losses compared to the previous quarter. This amount also exceeds two-thirds of 2024’s total losses.
Notably, a staggering $1.45 billion of the total Q1 crypto losses came from a single massive hack: the Bybit exploit. This breach shook the entire crypto industry, raising serious concerns about the safety of centralized exchanges. Regulators and security experts are now demanding stronger security measures to prevent such disasters from happening again.
“The increasing sophistication of hacker techniques highlights the pressing need for blockchain entities to enhance their security strategies,” remarked CertiK Co-Founder Ronghui Gu.
He pointed to the Bybit breach as a major wake-up call, emphasizing that security should no longer be viewed just as a way to gain a competitive edge. Instead, it needs to be seen as a shared responsibility that everyone in the blockchain industry must take seriously to protect the ecosystem as a whole.
Wallet Compromise Add to the Concerns
It was followed by Phemex, which lost $71.7 million, 0xInfini with $49.5 million, and MIM Spell at $12.9 million. Most of these losses were due to wallet compromises, with private key hacks causing $142.4 million in damage across 15 incidents. In addition, code vulnerabilities led to $47.1 million in losses from 68 separate exploits, while phishing attacks accounted for $15.8 million stolen in 81 incidents.
Adding to it, only 0.38% of the stolen funds were recovered, a sharp drop from 42.09% last quarter. In February 2025, no stolen funds were returned at all.
Ethereum- The Top Target!
Ethereum continues to be the top target for crypto hacks, with $1.54 billion stolen across 98 incidents this quarter. Its dominance in DeFi and smart contracts makes it a prime target, as billions of dollars are locked in protocols that can be vulnerable to exploits and security flaws.
According to CertiK’s report, attackers are increasingly using tactics like social engineering, artificial intelligence, and contract manipulation to bypass even the strongest security measures. With more people adopting crypto and asset values rising, CertiK’s experts warn that crypto theft is likely to keep rising.
Gu emphasized the need for a strong security approach, highlighting the importance of thorough code audits, constant monitoring, clear incident response plans, vulnerability assessment, and employee training to keep systems safe.
