Web3 Suffers $147M in Hacks as Security Flaws Persist

The Web3 ecosystem faced a significant security crisis in July 2025, as reported by SlowMist, a blockchain security firm specializing in smart contract audits and threat intelligence. The firm’s report indicated that the month saw 13 major hacking incidents, resulting in a total loss of $147 million. While $42.48 million of the stolen funds were either frozen or recovered, the remaining amount left a net loss of over $100 million[1]. These losses underscore the persistent vulnerabilities within blockchain infrastructure and highlight the need for enhanced security protocols across the industry.

Among the most notable incidents was a malware attack on CoinDCX, a major cryptocurrency exchange, which resulted in a $44.2 million loss. The attack exploited weaknesses in the exchange’s infrastructure, illustrating the risks posed by malicious software in the Web3 environment. Other breaches targeted decentralized finance (DeFi) protocols, where hackers exploited flaws in smart contracts and misconfigured systems to drain funds. These incidents reveal a recurring pattern of vulnerabilities that attackers consistently exploit.

SlowMist’s report attributed many of the breaches to common cyberattack techniques such as phishing, private key theft, and rug pulls. These methods typically involve a combination of technical weaknesses and human error, underscoring the need for broader education and improved security practices across the industry. Phishing attacks, in particular, remained a major issue, emphasizing the difficulty of protecting users from social engineering tactics[1].

The impact of these breaches extended beyond financial losses. Total Value Locked (TVL) metrics for affected platforms experienced notable declines as users withdrew assets in response to the security failures. Experts in the field stressed the importance of implementing robust security frameworks to mitigate future incidents. The report also pointed to potential regulatory responses, noting that such large-scale breaches often lead to increased scrutiny and stricter oversight of the crypto industry.

The scale of losses in July 2025 echoes similar incidents from 2024 and 2023, when the industry also faced losses exceeding $1 billion. These recurring breaches indicate a systemic issue in blockchain ecosystems, where exploit patterns remain largely unchanged. Industry analysts argue that a comprehensive approach to prevention, including stronger key management, multi-layered verification systems, and continuous threat monitoring, is essential for long-term stability.

The findings from SlowMist highlight a critical moment for the Web3 industry to reassess its security posture. While awareness and tools have improved, the frequency and severity of breaches suggest that more proactive and stringent measures are required. As the sector continues to evolve, stakeholders must prioritize user protection and risk mitigation to ensure sustainable growth and maintain market trust.

Source:

[1] SlowMist Security Report: July 2025 Sees $147 Million In Web3 Losses

(https://www.crowdfundinsider.com/2025/08/247117-slowmist-security-report-july-2025-sees-147-million-in-web3-losses/)