July 2025 Crypto Hacks Surge 27% as Backend Attacks and Social Engineering Cost $142 Million

In July 2025, the cryptocurrency industry experienced a sharp rise in hacking incidents, with total losses reaching $142 million across 17 attacks—a 27% increase compared to the $111 million lost in June, according to blockchain security firm PeckShield [1]. The most significant breach occurred on CoinDCX, where a sophisticated server attack led to a $44 million loss, highlighting the vulnerabilities in backend infrastructure within crypto platforms [1].

The attack on CoinDCX was not an isolated incident. On July 24, WOO X suffered a $14 million phishing attack, which involved social engineering tactics to compromise a team member’s device. Blockchain security expert Rob Behnke noted that such methods bypass technical safeguards by exploiting human error and trust [2]. The attackers used the compromised access to infiltrate WOO X’s development environment, executing multiple transactions before being detected [2].

These attacks reflect a broader trend: hackers are increasingly targeting off-chain backend systems rather than smart contracts. According to Behnke, backend infrastructures are often less scrutinized and harder to audit, making them attractive for sophisticated attacks. This shift in tactics underscores the need for stronger security controls and internal process improvements across the industry [1].

Other notable incidents in July 2025 included a $27 million hot wallet breach at BigONE and a $40 million exploit at GMX, where the attacker returned the stolen funds days later, suggesting varied motives among cybercriminals [1]. These events collectively illustrate the growing complexity and diversity of threats facing crypto platforms.

Experts stress that while technological defenses are crucial, human factors remain a major vulnerability. Social engineering attacks, in particular, exploit trust and communication weaknesses to bypass even the most advanced security protocols. Strengthening employee awareness and training is therefore as important as implementing multi-layered security controls and regular audits of backend systems [1].

The July 2025 hacks highlight the urgent need for the crypto industry to adapt to evolving attack vectors. Focusing on backend security, reinforcing off-chain infrastructure, and fostering a culture of vigilance among teams can help mitigate risks. As the threat landscape continues to evolve, continuous monitoring and proactive defense strategies will be essential to protecting digital assets.

Source: [1] CoinDCX Hack Highlights Potential Risks of Social Engineering in Crypto Security Breaches (https://en.coinotag.com/coindcx-hack-highlights-potential-risks-of-social-engineering-in-crypto-security-breaches/)