Ethereum

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<p>2025 marked the worst year on record for crypto security, with total losses from hacks, scams, and exploits surpassing $4.04 billion, according to data published by PeckShield.</p>
<p>The figure represents a 34.2% increase compared with the $3.01 billion lost in 2024, highlighting a sharp deterioration in the industry’s threat landscape.</p>
<p>PeckShield attributed the surge to systemic weaknesses in centralized infrastructure and a clear tactical shift toward targeted social engineering, rather than broad, low-effort attacks.</p>
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  Source: <a href="https://x.com/PeckShieldAlert/status/2010960699766563200" rel="noopener noreferrer nofollow">https://x.com/PeckShieldAlert/status/2010960699766563200</a>
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<h3 id="hacks-still-dominate-but-scams-are-catching-up">Hacks Still Dominate, but Scams Are Catching Up</h3>
<p>The breakdown of losses shows that crypto hacks remained the largest contributor, accounting for $2.67 billion, up roughly 24% year over year.</p>
<p><img loading="lazy" src="https://www.ethnews.com/wp-content/uploads/2026/01/G-mqCiKasAAJ56Q.jpeg" alt="" width="1200" height="675"></p>
<p>However, scams and phishing-related attacks grew even faster, reaching $1.37 billion, a 64% increase from 2024.</p>
<p><img loading="lazy" src="https://www.ethnews.com/wp-content/uploads/2026/01/G-rtmGEaAAAHH5c.jpeg" alt="" width="1200" height="675"></p>
<p>While the number of scam incidents rose, PeckShield noted that attackers increasingly focused on high-value individual targets, driving a higher average loss per incident. This shift reflects more sophisticated social engineering campaigns rather than mass-market fraud.</p>
<h3 id="centralized-exchanges-become-primary-targets">Centralized Exchanges Become Primary Targets</h3>
<p>A major structural change emerged in 2025: attackers pivoted away from DeFi toward centralized exchanges (CEXs) and large organizations. Losses linked to centralized entities surged to 75% of total value stolen, up from 46% in 2024.</p>
<p>This transition was driven by:</p>
<ul>
 <li>Supply-chain attacks</li>
 <li>Compromised private keys</li>
 <li>Exploits targeting custodial infrastructure</li>
</ul>
<p>Among all incidents, the Bybit exploit stood out as the single largest hack in crypto history, accounting for $1.5 billion in losses during February alone. That month marked the most severe spike of the year, with $1.51 billion stolen across just 20 incidents.</p>
<h3 id="ethereum-bears-the-largest-financial-damage">Ethereum Bears the Largest Financial Damage</h3>
<p>In terms of blockchains targeted, BNB Chain recorded the highest number of incidents, representing 29.2% of all attacks. However, Ethereum absorbed the bulk of the financial damage, accounting for 69% of total value lost, largely due to its role in hosting high-value institutional targets.</p>
<p>PeckShield also flagged Sui (SUI) as an emerging target, signaling potential future concentration of attacks beyond the dominant chains.</p>
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<h3 id="recovery-rates-decline-as-laundering-accelerates">Recovery Rates Decline as Laundering Accelerates</h3>
<p>Despite law enforcement and industry efforts, recovery outcomes worsened in 2025. Only $334.9 million worth of stolen crypto was recovered or frozen, down significantly from $488.5 million in 2024.</p>
<p>At the same time, tracked laundering linked to exploits reached $1.49 billion, a 14.6% increase year over year. PeckShield noted that this rise was driven by a higher concentration of large-scale hacks, with laundering conversion rates exceeding 60% for major incidents.</p>
<h3 id="a-structural-warning-for-the-industry">A Structural Warning for the Industry</h3>
<p>PeckShield’s data paints a clear picture: crypto crime in 2025 was not just larger, but more strategic. Attackers increasingly favored fewer, higher-impact operations, targeting centralized infrastructure and exploiting human vulnerabilities rather than smart contract flaws alone.</p>
<p>As the industry enters 2026, the report underscores a growing need for:</p>
<ul>
 <li>Stronger custody controls</li>
 <li>Enhanced key management</li>
 <li>Better user-side security education</li>
 <li>Improved real-time monitoring of laundering flows</li>
</ul>
<p>Without structural changes, the trend suggests that financial losses could continue to scale faster than security defenses.</p>
<p>The post <a href="https://www.ethnews.com/crypto-crime-explodes-in-2025-as-losses-top-4-billion/" rel="noopener noreferrer nofollow">Crypto Crime Explodes in 2025 as Losses Top $4 Billion</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.</p>

Crypto Crime Explodes in 2025 as Losses Top $4 Billion

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