Cryptocurrency hacks led to a staggering total loss of $2.78 billion in 2025, according to Finbold’s 2025 Cryptocurrency Market Report. This report, which aggregated data from blockchain security firm SlowMist, reveals significant insights into the vulnerabilities and evolving security measures within the digital asset industry.
The Bybit Hack: A Major Blow to Crypto Security
Of the total losses, over $1.5 billion originated from the infamous Bybit hack, a single event that highlighted the fragility of centralized wallet infrastructure. The breach stemmed from a wallet compromise, emphasizing the urgent need for improved custody solutions and key management practices. Despite advancements in smart contract security across blockchain protocols, centralized wallets remain a primary target for bad actors.
Other notable attacks in 2025 included incidents targeting the Cetus Protocol, Balancer V2, LIBRA, and Nobitex. These breaches pointed to a range of vulnerabilities, from contract flaws to lack of adequate safeguards, underlining the importance of robust security frameworks across decentralized systems.
Quarterly Trends in Crypto Hack Losses
The pattern of losses in 2025 was highly concentrated in the early months of the year. In Q1 alone, hackers drained approximately $1.78 billion, contributing to nearly two-thirds of the total annual losses. By contrast, losses in Q2 fell to $465 million and continued to decline in Q3 with just over $300 million. The downward trend persisted into Q4, which reported losses under $230 million—the lowest for the entire year.
This progressive slowdown suggests an industry gradually adapting to mitigate security vulnerabilities. Improved auditing practices, cautious capital deployment, and decentralized protocols adopting stronger safety measures contributed to this stabilization.
Key Takeaways for the Crypto Industry
Though strides were made in combating cyber threats in the second half of 2025, wallet-related breaches remain the most financially devastating. The dominance of the Bybit hack serves as a stark reminder of the systemic risks posed by centralization within the crypto space, especially for custody infrastructures.
While security enhancements—such as protocol audits and better smart contract designs—are helping reduce risks, achieving comprehensive safety will require a concerted focus on custody systems’ security. The drop in breach frequency during the year-end highlights the potential for improvement and the sector’s growing maturity.
Invest Safely with Trusted Platforms
For those looking to invest in cryptocurrencies while avoiding these risks, platforms like eToro offer a secure environment for trading and managing digital assets. With over 30 million users worldwide, eToro allows beginners and experienced investors to trade cryptocurrencies, stocks, and more. Learn more about eToro’s features and trading fees.
As the crypto industry continues to evolve, maintaining an awareness of security risks and investing through reliable platforms will be crucial for safeguarding assets. The lessons from 2025 serve as a wake-up call for better infrastructure planning and vigilance in the digital finance ecosystem.
