Hackers Launder Stolen Crypto in Under 3 Minutes, Outpacing Response Systems

Hackers are increasingly exploiting the speed and anonymity of blockchain to launder stolen cryptocurrency in under three minutes, according to a report by Global Ledger titled “H1 2025 Crypto Hacks Report” [1]. The report analyzed 119 separate incidents in the first half of 2025, in which $3 billion in crypto was stolen—1.5 times the total amount reported in all of 2024. Alarmingly, one in four of these attacks saw the funds fully laundered before any public statement or alert was issued, highlighting a critical lag in response times across the industry [1].

The speed at which stolen funds are moved is staggering. In the most extreme case, hackers moved assets in just four seconds—over 75 times faster than the average alert system response time [1]. One incident saw the entire laundering process—covering swaps, transfers, and final deposits—completed in just 2 minutes and 57 seconds [1]. By that point, the assets are often beyond recovery. The report notes that only 4.2% of stolen funds were recovered in H1 2025, totaling $126 million [1].

The report emphasizes that the typical window for crypto service providers to act on stolen funds is 10 to 15 minutes [1]. However, hackers are now operating at a pace that far outstrips the ability of both private and public actors to respond effectively. Lex Fisun, CEO and co-founder of Global Ledger, said that in over 68% of cases, funds were moved before the attack was publicly known [1]. By the time an alert is issued, the opportunity to trace the assets has often already passed.

The laundering process itself is facilitated by the interconnected nature of DeFi protocols, decentralized exchanges (DEXs), and token bridges. Hackers use layered chains of transactions and high-liquidity tokens to quickly move and obscure the origin of stolen assets. For example, native assets like Ether (ETH), with their deep liquidity pools, are frequently used for immediate swaps before any alarm is raised [1].

Marcin Zarakowski, CEO of blockchain security firm Recoveris, highlights the mismatch between technological capabilities and legal frameworks. While tools exist to trace and freeze digital assets, international cooperation and legal clarity remain major bottlenecks. Public sector actors globally struggle with how to classify and seize digital assets, delaying critical responses [1].

The report also points to specific vulnerabilities in the crypto ecosystem. Access-control flaws, smart contract weaknesses, and phishing attacks on individual wallets are rampant. In addition, sophisticated actors such as North Korea’s Lazarus group are coordinating attacks with precision, often timing their movements to coincide with normal transaction activity. For instance, the median time of the first movement of funds was just after noon, a period of consistent system activity and potential staff transition gaps [1].

Centralized exchanges (CEXs) remain the most targeted, accounting for over 54% of total losses in H1 2025 [1]. Token contracts and personal wallets followed as secondary targets. As cybercriminals continue to refine their tactics, the need for real-time monitoring and proactive security measures becomes more urgent.

Experts suggest that virtual asset service providers must shift from a reactive to an anticipatory stance. This includes adopting real-time wallet risk scoring, dynamic blocklists, and cross-platform intelligence sharing to catch laundering attempts as early as possible [1]. Oleksandr Plakhotnyuk, a cybersecurity official in Ukraine, emphasizes the need for standardized request templates and direct communication channels between law enforcement and crypto platforms to accelerate information flow during critical incidents [1].

With stolen funds moving faster than ever, the industry faces a race against time. As Fisun noted, speed is now a key weapon for hackers—and the response must match.

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Source:

[1] Cryptonews – [https://cryptonews.com/exclusives/crypto-hackers-are-laundering-stolen-funds-in-under-3-minutes/](https://cryptonews.com/exclusives/crypto-hackers-are-laundering-stolen-funds-in-under-3-minutes/)