Crypto Hacks Surge 131% YoY in Q1 2025, Inflicting $1.63B in Losses

In the first quarter of 2025, the crypto market experienced a significant uptick in security breaches, with losses totaling $1.63 billion—more than double from the previous year. Major incidents, including a $1.46 billion exploit at Bybit and a $69.1 million attack on Phemex, dominated the quarter, accounting for 94% of the losses. Additional breaches involved projects such as 1INCH, which suffered a $5 million hack that saw 90% of funds recovered. Centralized exchanges were hit hardest, absorbing the majority of the damage, while decentralized finance projects saw relatively fewer attacks. The report also highlighted that Ethereum accounted for over 50% of hack-related losses in 2024, and Binance’s BNB Chain was noted as the most exploited blockchain, with 19 separate incidents recorded. These developments underscore the urgent need for more robust security measures across the crypto industry.