Crypto Hacks in Q1 2025: A Devastating Loss Amid Crypto Downfall

The first quarter of 2025 has been the worst on record for crypto security breaches, with losses surpassing $1.6 billion. This staggering amount underscores the growing threat that cyberattacks pose to the cryptocurrency industry. According to Immunefi’s latest research report, these losses make Q1 2025 the most damaging period in crypto history. Compared to Q1 2024, when total losses stood at $706 million, the impact of this year’s breaches has more than doubled.

Two Major Exploits Dominate Losses

Among a string of attacks across various platforms, two significant breaches were the primary causes of the overwhelming majority of the losses. Bybit lost a devastating exploit worth $1.46 billion, and Phemex fell victim to an attack worth $69.1 million. Together, the two breaches were responsible for a whopping 94% of the overall losses, which totaled an impressive $1.52 billion. 

Immunefi analysts highlight the gravity of the events, asserting that they serve to underscore the threat caused by state-sponsored actors in the crypto arena. Their capacity to penetrate established, thoroughly tested platforms is a stark reminder that security vulnerabilities are still a formidable opponent.

Centralized Exchanges Hit the Hardest

Centralized exchanges bore the biggest proportion of such attacks, losing 94% of all losses in Q1 2025. Decentralized finance (DeFi) protocols, however, lost just 6% of the total losses. This suggests that centralized platforms remain top-priority targets for attackers, perhaps due to their liquidity and enormous user bases. Immunefi’s report calls for an urgent need to bolster security right across the entire crypto stack in a bid to prevent future apocalyptic breaches.

The Most Exploited Blockchains and March’s Costly Hacks

Among the affected blockchains, Binance’s BNB Chain (formerly Binance Smart Chain) suffered the most, with 19 recorded incidents. Ethereum followed closely behind with 15 exploit cases. March proved to be particularly damaging, witnessing 20 separate hacks that resulted in $33.46 million in losses. Notable attacks during this period included a $13 million exploit at Abracadabra. money and an $8.32 million breach at Zoth.

With increasing frequency and scale of crypto hacks, the industry needs to prioritise on enhancing security measures. With more advanced attackers joining the fray, possibly supported by nation states, there is a need for an active response to harden platforms against disasters prior to their occurrence. With billions at stake, having robust security measures has never been more critical to the future of cryptocurrency.