$3.1 Billion Lost: Hacken’s 2025 Report Reveals Web3 Security Crisis

The first half of 2025 has already become the most damaging period in Web3 security history, according to Hacken’s newly released Half-Year Security Report.

Losses in the first six months have exceeded $3.1 billion — overtaking the total losses recorded in all of 2024.

Access Exploits and AI Attacks Dominate Losses

The report, which covers threats across DeFi, CeFi, and AI-integrated infrastructure, reveals that access control vulnerabilities were the top attack vector, leading to $1.83 billion in stolen funds — largely in Q1. Meanwhile, social engineering schemes and phishing campaigns grew to $600 million in damages, underscoring the rising human-centric risks in crypto.

One of the most concerning trends: AI-related exploits have surged 1,025%, driven by insecure APIs and weak inference layer protections. As more protocols integrate AI-driven services, attackers are quickly identifying and exploiting the gaps in implementation.

DeFi Sees Worst Quarter Since Early 2023

Smart contract flaws caused approximately $263 million in losses, marking the worst DeFi quarter in over two years. Notably, the first major Uniswap V4 hook exploit cost users $12 million, signaling that even upgraded protocols remain vulnerable when novel features are introduced without sufficient defense layers.

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A Security Wake-Up Call for Web3 Teams

Hacken’s Co-Founder Yevheniia Broshevan stressed the importance of rethinking cybersecurity:

“Cybersecurity is no longer just a technical safeguard — it’s a core business function.”
With MiCA and the EU AI Act enforcement gaining traction, projects are urged to move beyond one-off audits. The report recommends real-time monitoring, automated threat detection, and governance alignment as essential tools for mitigating evolving risks.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.