Bybit Exploit Accounts for Majority of Losses

The first quarter of 2025 witnessed a significant rise in cryptocurrency-related hacks, with total losses reaching $1.63 billion. This marks a 131% increase compared to the same period in 2024, when losses amounted to $706 million, according to blockchain security firm PeckShield.

The surge in stolen funds was primarily driven by the massive Bybit hack in February, which accounted for over 92% of the total losses.

February Sees Unprecedented Losses

Hackers stole approximately $87 million in cryptocurrency in January. However, February saw a dramatic escalation, with total losses soaring to $1.53 billion, making it one of the most devastating months for crypto security breaches.

The Bybit breach was one of the largest crypto thefts in history. In addition to this incident, February also witnessed several other significant exploits, including a $50 million hack on Infini, a $9.5 million breach at zkLend, and an $8.5 million loss from Ionic.

Decline in March as Some Funds Are Recovered

March saw a considerable drop in hack-related losses, decreasing by 97% from February. PeckShield reported that only $33 million in crypto assets were stolen during the month. Some of the stolen funds were even recovered, mitigating the impact on affected users and protocols.

The largest attack in March targeted the decentralised finance protocol Abracadabra.Money, resulting in a $13 million loss. The attacker drained 6,260 Ether (ETH) from the protocol on 25 March. The second-largest incident was an $8.4 million exploit on the real-world asset (RWA) restaking protocol Zoth. On 21 March, security firm Cyvers flagged a suspicious transaction, revealing that an attacker had withdrawn the funds and converted them into stablecoins before transferring them to another address.

Despite the millions lost in March, some stolen assets were successfully returned. On 7 March, a hacker who exploited a smart contract vulnerability on decentralised exchange (DEX) 1inch returned 90% of the stolen funds. The DEX had offered the hacker a 10% bounty, valued at $500,000, in exchange for returning the remainder of the stolen crypto. The attacker accepted the offer, returning $4.5 million to 1inch.

A Growing Threat to Crypto Security

The alarming rise in crypto hacks during Q1 2025 underscores the increasing sophistication of cybercriminals targeting digital assets. With over 60 attacks recorded in the first three months of the year, industry experts are urging exchanges, DeFi platforms, and investors to enhance their security measures.

While March offered some relief with significantly lower losses, the damage inflicted earlier in the quarter highlights the persistent threat facing the cryptocurrency industry. Security firms continue to monitor suspicious activity, while some projects have implemented bug bounty programmes to encourage ethical hacking and vulnerability disclosure.

As the crypto sector evolves, the need for stronger security protocols and rapid response mechanisms becomes increasingly critical to safeguarding digital assets from future attacks.