April 16, 2025

By Our Correspondent

Cryptocurrency thefts have surged dramatically in the first quarter of 2025, with losses exceeding $1.77 billion across various incidents, as reported in Finbold’s Q1 2025 Cryptocurrency Market Report.

This data, gathered from blockchain security firm SlowMist, highlights serious concerns regarding the security of digital assets just three months into the year. A single incident has contributed significantly to the total losses recorded thus far. In February, an unidentified assailant infiltrated a cold wallet belonging to the cryptocurrency exchange Bybit, absconding with approximately $1.5 billion in Ethereum.

This incident alone accounts for nearly 85% of the total amount stolen in Q1, surpassing the cumulative losses from the first half of 2024. If this trend persists, 2025 could surpass previous years in terms of theft value, including 2023 and 2024, which reported quarterly losses of $452 million and $1.38 billion, respectively.

Another notable event in Q1, albeit on a smaller scale, was the downfall of the Libra (LIBRA) project, which incurred losses of around $100 million. This situation gained attention due to Argentinian President Javier Milei’s early public support for the cryptocurrency. While there is no direct evidence linking him to the fraudulent activities, his continued endorsement has fuelled speculation within the industry

Barstool Sports founder Dave Portnoy, who also endorsed the token, reportedly incurred losses exceeding $5 million following the collapse of the coin’s value. While other incidents in the sector may not have been as severe, they nonetheless underscored the weaknesses present in cryptocurrency platforms.

In February, the Hong Kong-based neobank Infini experienced a loss of $50 million when an attacker took advantage of admin privileges retained by a developer involved in the creation of the platform’s smart contracts. The stolen funds were subsequently laundered using the cryptocurrency mixer Tornado Cash. Additionally, two other hacks exploited vulnerabilities in smart contracts.

Abracadabra Money faced a loss of $13 million in late March due to an exploit in its contract logic. Earlier that same month, zkLend lost approximately $9.6 million when an attacker capitalized on a rounding error to siphon off 3,600 ETH from its systems. Although the reported figure of $1.77 billion is already considerable, analysts suggest that the true total may be even higher, as many incidents go unreported or organizations do not fully disclose the extent of their losses.

“The $1.77 billion attributed to cryptohacking incidents in Q1 2025 only accounts for cases that are publicly known,” stated Finbold researchers Jordan Major and Diana Paluteder in their report.

If the current trend continues, 2025 could witness over $7 billion in cryptocurrency theft, more than triple the total from the previous year, making it the most detrimental year for the sector thus far.