Regtech SlowMist Releases MistTrack Analysis on Stolen Crypto Funds

Regtech firm SlowMist has released a new analysis on stolen crypto funds using its MistTrack platform, highlighting vulnerabilities and trends in the cryptocurrency sector. The report comes as the sector continues to face evolving threats, despite a notable drop in phishing-related losses in 2025. SlowMist's research underscores the importance of monitoring both old and emerging attack vectors in the space.

The analysis reveals that the crypto industry has become more resilient to certain types of attacks in recent months. Phishing-related losses dropped by 83% in 2025, totaling $83.85 million across 106,106 victims. This decline is attributed to a decrease in user activity and the overall market cooldown. However, the report warns that the threat landscape has not disappeared; it has simply evolved.

New attack methods emerged in 2025, including the exploitation of EIP-7702. This new vector allowed attackers to bundle multiple malicious actions into a single signature, making phishing more efficient and harder to detect. The report also points to Permit-based attacks as a major concern, with 38% of large-scale losses attributed to this method.

Why Did This Happen?

The drop in phishing losses in 2025 was tied closely to market cycles. When user activity dropped, so did the number of victims. Conversely, during periods of market growth, such as Q3 2025, phishing losses surged to $31.04 million. The report describes phishing activity as a "probability function of user activity." This suggests that as markets heat up again, so too will phishing incidents.

Another contributing factor was the rise of more sophisticated attacks that bypassed traditional defenses. Cybercriminals increasingly used trusted cloud infrastructure and authenticated email systems to conduct their operations, making detection and mitigation more difficult.

How Did Markets Respond?

Despite the drop in phishing-related losses, the broader crypto ecosystem has remained volatile. In 2026, the market has started with a mix of optimism and caution. Analysts at Bernstein have suggested that Bitcoin has likely bottomed, with price targets of $150,000 for 2026 and $200,000 for 2027. However, they also warned that the recovery will depend on the expansion of stablecoin usage and the tokenization of real-world assets.

On the regulatory front, India has taken significant steps in 2025 to bring its crypto industry under a regulatory umbrella. The Financial Intelligence Unit (FIU) registered 49 exchanges and imposed $3.1 million in fines for non-compliance. This has helped reduce illicit activities and improved market legitimacy. However, the country still faces challenges in enforcing compliance and protecting users from fraud.

What Are Analysts Watching Next?

Investors and analysts are closely watching the performance of crypto stocks in 2026. Bitmine Immersion Technologies and Riot Platforms are among the top names being tracked. Bitmine's share price dropped from a one-year high due to an overvaluation warning, but it remains a key player in the space. Riot Platforms, on the other hand, continues to diversify into AI and HPC data centers, adding potential growth avenues.

The regulatory environment will also play a critical role. Countries like India are setting precedents, and others may follow suit in 2026. This could lead to more standardized compliance frameworks, which may either stabilize the market or introduce new costs for operators. Investors will need to track how these policies evolve and how they affect market dynamics.

Finally, security firms like Scam Sniffer and SlowMist will remain key players in monitoring threats. Their reports will help shape investor sentiment and drive responses to emerging risks. As the industry matures, so too will the tools and strategies used to protect it.