Bybit Hack Leads to Record Crypto Losses in Early 2025

The first quarter of 2025 has been marked by a significant surge in crypto hacks, with losses totaling over $1.63 billion.

Blockchain security firm PeckShield reported that the vast majority of these losses—more than 92%—stemmed from a single incident involving the exchange Bybit, making it one of the largest crypto thefts to date.

January started with relatively moderate losses, amounting to $87 million. However, February saw a staggering spike to $1.53 billion, driven primarily by the Bybit attack. Alongside this major incident, other February hacks added another $126 million to the tally. Among them were a $50 million exploit targeting Infini, a $9.5 million breach at zkLend, and an $8.5 million loss from Ionic.

The situation improved significantly in March, as hack-related losses plummeted by 97% compared to February. During this period, only $33 million in crypto was stolen, and some of the compromised funds were even recovered. This decline in losses offered a bit of relief to affected users and protocols.

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One of the most significant incidents in March was a $13 million exploit involving the decentralized finance platform Abracadabra.Money, where attackers siphoned off 6,260 Ether on March 25. Another notable hack that month targeted the Zoth protocol, resulting in an $8.4 million loss after an attacker moved funds from Zoth’s wallets to another address, converting the assets to stablecoins.

Interestingly, not all stories ended with losses. On March 7, a hacker who exploited the decentralized exchange 1inch for $5 million decided to return 90% of the stolen funds. After the DEX offered a 10% bounty as a compromise, the attacker sent back $4.5 million, keeping $500,000 as the reward.

Overall, the first quarter of 2025 saw a 131% increase in hack-related losses compared to the same period in 2024, when the total stood at $706 million. The surge highlights the growing challenges of securing digital assets, despite some recovery efforts and improved security measures.

Alexander Stefanov