Crypto Losses to Hit $2.1 Billion by Mid-2025 Due to Infrastructure Attacks

Crypto losses are projected to reach $2.1 billion by the end of the first half of 2025, according to recent reports from blockchain intelligence firms. This significant increase in thefts and scams highlights the ongoing challenges faced by the crypto industry in securing its platforms and protecting user assets.

Infrastructure attacks, which include private key thefts and frontend exploits, have been identified as the primary cause of crypto losses in the first half of 2025. These attacks accounted for over 80% of all stolen crypto during this period. Infrastructure attacks target the systems that power crypto platforms, making them particularly damaging as they can siphon off ten times more funds per incident compared to other methods such as protocol hacks or phishing attempts. The reason for this trend is that infrastructure exploits strike at the core of a platform’s security, whether through wallet breaches, user interface manipulation, or stealing private credentials. This indicates that many platforms are still struggling with basic security measures, even as attackers become more sophisticated and aggressive.

Protocol exploits, which include flash loan attacks and re-entrancy exploits targeting vulnerabilities in smart contracts, also contributed to the overall losses. These exploits made up around 12% of total losses in the first half of 2025. While smaller in volume compared to infrastructure attacks, protocol exploits are more complex and can severely damage user trust in decentralized finance (DeFi) platforms. These methods manipulate the logic of the system itself, allowing attackers to steal funds or crash protocols in a matter of seconds. The increasing complexity and severity of these attacks underscore the need for better audits and smarter contract design across the board.

State-sponsored crypto attacks have emerged as a significant threat, with a single incident from North Korea’s hack of Bybit accounting for nearly 70% of all losses so far this year. This attack alone doubled the average hack size compared to the same period in 2024, from $15 million to $30 million per incident. Another notable incident involved a pro-Israeli hacking group known as Predatory Sparrow (Gonjeshke Darande) exploiting Iran’s largest crypto exchange, Nobitex, resulting in the theft of $100 million. This attack is believed to be linked to cyber warfare between the two countries. The rise in state-sponsored attacks indicates that crypto theft is no longer just about financial gain but is increasingly linked to politics, ideology, and state-sponsored cyber warfare.

In summary, the crypto industry faces significant challenges in securing its platforms and protecting user assets. Infrastructure attacks, protocol exploits, and state-sponsored attacks have all contributed to the projected $2.1 billion in losses by the end of the first half of 2025. These trends highlight the need for improved security measures, better audits, and smarter contract design to mitigate the risks posed by increasingly sophisticated and aggressive attackers.