Crypto Industry Loses $2.1 Billion to Social Engineering Attacks in 2025

In 2025, the cryptocurrency industry faced a significant challenge as hackers shifted their focus from exploiting smart contract vulnerabilities to targeting users through social engineering schemes. According to Web3 cybersecurity firm CertiK, over $2.1 billion was stolen in cryptocurrency-related attacks this year, with the majority of losses attributed to wallet compromises and phishing attacks. This shift in attack patterns highlights a growing trend where hackers are exploiting human behavioral weaknesses rather than technical vulnerabilities in smart contracts or blockchain infrastructure.

The co-founder of CertiK, Ronghui Gu, noted that the majority of the $2.1 billion stolen was due to wallet compromises, key mismanagement, and operational issues. Phishing scams, in particular, have become a significant threat, costing the crypto industry over $1 billion across 296 incidents in 2024. These scams involve attackers sharing fraudulent links to steal victims’ sensitive information, such as the private keys to crypto wallets. Address poisoning is another social engineering scheme where attackers trick victims into sending assets to fraudulent wallet addresses, demonstrating that these attacks do not require any hacking skills.

The rise in social engineering schemes may indicate a positive development for the decentralized finance (DeFi) protocols. As Gu explained, attackers always target the weakest link, and while smart contracts or blockchain code was previously the weakest point, hackers now see human behavior as a more vulnerable target. This shift suggests that DeFi protocols are becoming more secure, but it also underscores the need for improved wallet security and access control, as well as real-time transaction monitoring and simulation tools to mitigate future incidents.

One of the most notable incidents in 2025 was the $1.4 billion Bybit exchange hack on February 21, staged by the infamous North Korean Lazarus Group. This single exploit accounted for more than 60% of the value lost in all crypto hacks in 2024, when the industry saw $2.3 billion stolen across 760 onchain security incidents, according to CertiK’s annual Hack3d report. The Bybit hack underscores the sophistication and scale of attacks that the cryptocurrency industry is facing, highlighting the urgent need for enhanced security measures.

In response to these challenges, the industry must prioritize investing in better security protocols and user education. As hackers continue to evolve their tactics, it is crucial for cryptocurrency platforms and users to stay vigilant and proactive in protecting their assets. By focusing on human behavior and operational security, the industry can better defend against the growing threat of social engineering attacks and ensure the safety of its users.