Cryptocurrency Theft Surges 135% in Q1 2025, $1.77 Billion Stolen

In the first quarter of 2025, the cryptocurrency world faced an unprecedented wave of digital asset theft, with over $1.77 billion stolen in various hacks. This alarming figure, compiled from data tracked by blockchain security firm SlowMist, underscores the growing vulnerability of digital assets to cyber threats. The sheer magnitude of these thefts highlights the urgent need for enhanced security measures within the cryptocurrency ecosystem.

The most significant incident of the quarter was the Bybit hack in February 2025, where an unknown assailant stole approximately $1.5 billion worth of Ethereum (ETH) from a Bybit cold wallet. This single attack accounted for nearly 85% of the total value stolen in Q1 2025, making it the largest cryptocurrency heist to date. The Bybit hack not only dwarfed the total amount stolen in the first half of 2024, which was $1.38 billion, but it was also three times larger than the total for the first quarter of 2023, which was $452 million. This puts 2025 on track to be a record-breaking year for cryptocurrency hacks, with several high-profile incidents already reported.

Another shocking event of the quarter was the Libra (LIBRA) rug pull, which resulted in the loss of approximately $100 million. This incident involved the Argentinian President Javier Milei, who had been promoting LIBRA and the associated blockchain as a way to invest in the country. Although Milei appears to have been uninvolved with the scam itself, he has remained unapologetic. Another prominent figure involved in the scandal was Dave Portnoy, founder of Barstool Sports, who lost more than $5 million when the meme coin crashed.

Infini, a stablecoin neobank, suffered a $50 million loss in late February when an attacker abused administrative privileges they had retained. The attacker, who had previously helped develop the contract for the company, secretly kept undue privileges and drained the funds using the cryptocurrency mixer Tornado Cash. This incident highlights the risks associated with retaining backdoor access to digital assets.

In late March, an attacker exploited a weakness in Abracadabra Money’s smart contracts to drain 6,262 ETH, worth approximately $13 million at the time, from the liquidity pool. Similarly, in early February, another assailant utilized a rounding bug to drain zkLend of 3,600 ETH worth $9.6 million. These incidents underscore the importance of rigorous security audits and the need for developers to address vulnerabilities in smart contracts.

It is worth noting that the $1.77 billion figure reported by Finbold’s Q1 2025 Cryptocurrency Market Report is based on incidents with known values, meaning that the actual total likely exceeds this amount. This suggests that the true extent of cryptocurrency theft in the first quarter of 2025 may be even more significant than currently reported.

The first quarter of 2025 has been a wake-up call for the cryptocurrency industry, highlighting the urgent need for enhanced security measures and vigilance against cyber threats. As the value of digital assets continues to grow, so too does the risk of theft and fraud. It is crucial for stakeholders in the cryptocurrency ecosystem to prioritize security and work together to protect digital assets from malicious actors.