Crypto Hack Losses Drop 39.29% in May, Cetus Exchange Hit for $223 Million

In May, the crypto industry witnessed a notable decrease in hack-related losses, with a total of $244.1 million stolen across 20 major incidents. This figure marks a 39.29% reduction from the previous month, according to blockchain security firm PeckShield. The decline in losses is a positive indicator of the industry's efforts to bolster its security measures and stay ahead of cyber threats.

The most significant hack of the month occurred on May 22, targeting the Cetus decentralized exchange. Within a 24-hour period, hackers exploited a flaw in the most significant bits (MSB) check, allowing them to manipulate liquidity parameters and establish large positions. This incident resulted in user losses totaling $223 million. Fortunately, a significant portion of the stolen funds, approximately $157 million or 71% of the total amount, was frozen by Cetus and the Sui Network, mitigating the impact of the attack.

The second-largest exploit of the month was a $12 million attack on the DeFi platform Cork Protocol. According to cybersecurity firm Cyvers, the attacker used the exploit to steal roughly 3,761 Wrapped Staked Ether (wstETH), which was subsequently converted to Ether. Other notable hacks included a suspected DPRK-linked attack for $5.2 million, an MBU token exploit for $2.2 million, and a MapleStory Universe exploit for $1.2 million.

The decline in hack-related losses comes as the crypto industry intensifies its efforts to protect against malicious actors. On May 31, it was reported that the security team of a crypto exchange discovered vulnerabilities in the operational security of the Lazarus Group, a government-sponsored cybercrime network. This discovery was made following a counter-operations probe that exposed IP addresses, a database, and tracking algorithms used by the group.

Despite the progress, the crypto industry continues to face significant challenges. In the first quarter of 2025, hackers stole over $1.63 billion in cryptocurrency, with the Bybit exploit accounting for more than 92% of total losses. February 2025 saw a dramatic spike in losses, totaling $1.53 billion, primarily due to the Bybit attack, which remains one of the largest crypto thefts to date. The industry must remain vigilant and continue to invest in robust security measures to protect against future threats.