The surge of cybercrime within the context of cryptocurrency has become a pertinent issue following the PeckShield report that estimated over $1.63 trillion was stolen in cryptocurrency alone in the first quarter of 2025, signaling a worrying increase of 131% on a year-over-year basis. These numbers pose yet another threat to the rapidly expanding market of digital assets.
The Bybit Heist: A Billion-Dollar February
The majority of the stolen assets came from a single exploit on Bybit, which was reported in February. This single exploit was responsible for 1.53 trillion dollars in stolen assets, making it one of the most notorious crypto thefts to date. This highlights the emerging threat posed towards well-known exchanges and their susceptibility to more complex forms of cybercrime.
A Spate of February Losses: Infini, zkLend, and Ionic
In addition to the headline-grabbing Bybit heist, other industries were also victims of cybercrime in February. Infini alone faced the brunt of the attack with an exploit worth $50 million, alongside zkLend losing $9.5 million and Ionic losing $8.5 million in what summed to a staggering onslaught of $126 million in losses.
A Glimmer of Hope: March Sees a Sharp Decline
Amidst very bleak news, a shred of hope has emerged in March. PeckShield’s report highlighted that losses due to crypto hacks dropped steeply by 97% since only $33 million was stolen in crypto hacks across the month. This decline is remarkable and offers ample relief as it signals lessened crypto criminal activities.
The Year-Over-Year Surge: A Concerning Trend
Even though the decline in crime rates in March is remarkable and positivity inducing, the state for Q1 2025 still poses a problem across the board. Stolen assets undergoing crypto crime reached $1.63 billion, which reflects a 131% increase relative to the $706 million figure in Q1 2024. The spike indicates that crypto hacks continue to get more advanced and clever. There are more than 60 hacks in the first quarter across various forums, which is quite alarming.
Abracadabra. Money: DeFi Protocol Targeted
One of the most white hacks perpetrated in March was against Abracadabra. Money, a decentralized finance (DeFi) protocol. An attacker withdrew $13 million and 6,260 Ether, making the total amount $13 million on March 25. The incident abounds with a lot of risk for the side of the DeFi platforms, as they are known to operate with little to no regulation and complex coding.
Zoth Exploit: The RWA Restaking Protocol Gets Hacked
One of the other notable hacks perpetrated in March was on Zoth, a protocol dealing with the restaking of Real World Assets (RWAs). Cyvers, a cybersecurity company, found out about an alarming transaction on March 21 in which an attacker pulled out the amount of $8.4 million. After the funds were drained, they were changed to stablecoins, indicating the potency and sophistication of these types of exploits.
Partial Recovery: A Single Brighter Spot
Even though there is significant loss in Q1 2025, the report highlights huge losses. However, there is a little bit of good news. A portion of the funds was returned from one hacker who exfiltrated $5 million out of the DEX 1inch. On March 7, he returned 90% of the assets. The DEX had posted an offer of 10% of the amount, that is, $500,000, to retrieve the exfiltrated funds. The asset’s attacker eventually relented and gave back $4.5 million.
The Path Forward: Increased Security and Alertness
The PeckShield report summarizes the problems that are and will be relevant in the world of cryptocurrency. The increasing numbers of hacks indicate that security protocols, auditing procedures, and platform/user alertness need to be heightened. Although there is a reduction in losses in March, which serves some optimism for the industry, combating cybercrime while maintaining the integrity of the digital assets ecosystem requires constant proactive attention.
