Cryptocurrency crime is surging in 2025, with total crypto losses for the first half of the year already exceeding the 2023 total and on track to set a new record, according to a new report by American blockchain analysis firm Chainalysis.
This surge is being driven by thefts from cryptocurrency services, and personal wallet compromises.
Total crypto losses reached approximately US$2.8 billion in H1 2025, 12% higher than the 2023 total of about US$2.5 billion and equivalent to roughly 88% of 2023’s US$3.3 billion. At the current pace, losses could surpass US$4 billion by year-end, exceeding the previous record set in 2022.
Crypto services as prime targets
This year, cryptocurrency services continue to bear the brunt of thefts, with over US$2.17 billion stolen in H1 2025. The figure is 17% higher than in 2022, previously the worst year on record. If current trends continue, thefts from services could exceed US$4.3 billion this year, Chainalysis predicts.
The US$1.5 billion hack of ByBit in February 2025 accounted for the majority of service losses in H1 2025 and marked the largest crypto theft in history.
Hackers linked to North Korea’s Lazarus Group allegedly breached one of ByBit’s suppliers and altered a digital wallet address used for transferring 401,000 ethers.
Previously, the Lazarus Group hackers targeted banks, but have, in the last five years, specialized in attacking cryptocurrency companies, an industry that’s less protected with fewer mechanisms in place to prevent money laundering.
Notable past incidents include the 2019 hack of US$42 million from South Korean crypto exchange Upbit; the 2020 theft of US$275 million from crypto exchange KuCoin; the 2022 Ronin Network attack which netted more than US$600 million in crypto; and the 2023 theft of over US$100 million from the Atomic Wallet service. In 2024, North Korea-related crimes accounted for at least US$1.3 billion in losses, according to Chainalysis, underscoring the growing sophistication of state-sponsored actors in the crypto space.
Personal wallet compromises on the rise
Personal wallet compromises are also becoming more significant, with attackers increasingly targeting individual users. In H1 2025, such incidents accounted for 23.35% of all stolen fund activity year-to-date (YTD) in 2025, a decline from roughly 44% in 2024, but more than double their 10% share in 2022.
This trend reflects improved security practices at major service providers, pushing attackers towards less-protected individuals, as well as the growing accessibility of sophisticated targeting individual-targeting techniques, including artificial intelligence (AI). Rising crypto prices have also increased the value of crypto held in personal wallets, making them more attractive targets.
Data show that bitcoin theft continued to represent a significant portion of stolen value in H1 2025. However, stablecoins are gaining in prominence, overtaking ether as the second most stolen crypto during the period.
Data also reveal that the average loss resulting from compromised personal wallets storing bitcoin is increasing over time. This suggests that attackers are deliberately targeting higher-value individual holdings.
Attacks are also increasing on altcoin wallets, particularly on non-bitcoin and non-Ethereum virtual machine (non-EVM) chains like Solana.
The rise of “wrench attacks”
One disturbing development this year is the rise of so-called “wrench attacks”. In these attacks, criminals use physical violence or coercion against individuals to access their crypto holdings.
In 2025, wrench attacks are on pace to double the highest previous annual total, a surge which correlates with bitcoin’s price outlook and which suggests that perceived future gains may encourage more such crimes.
Several high-profile cases have made headlines in the past year. On January 21, 2025, David Balland, a co-founder of French crypto firm Ledger, and his wife were kidnapped from their home in central France. Ledger is one of France’s most successful tech startups, valued at US$1.47 billion, according to CB Insights.
The kidnappers demanded a crypto ransom, part of which was paid. Balland and his wife were rescued in a police operation, and at least nine suspects have since been detained.
In May, the father of a crypto-millionaire was abducted, with kidnappers demanding a ransom of between EUR 5 million (US$5.7 million) and EUR 7 million (US$7.9 million), France24 reported. A source close to the investigation said that one of the father’s fingers had been chopped off. Police arrested seven suspects.
That same month, the daughter and grandson of a French cryptocurrency entrepreneur narrowly escaped a kidnap attempt by armed men in Paris. According to video footage, three masked men jumped out of a van and tried to force the woman and her child into the vehicle. The attackers fled in the vehicle, which was found close by. The woman is the daughter of the CEO and co-founder of Paymium, a French crypto exchange platform.
Crypto laundering patterns
The Chainalysis report also examines laundering behavior, noting significant differences between personal wallet compromises and service attacks.
In 2024 and 2025, threat actors targeting services mainly used cross-chain bridges as a means of laundering funds by chain hopping. Cross-chain bridges allow different blockchains to securely share data, allowing users to transfer funds between blockchains that would otherwise be unable to communicate.
Mixers are also more predominantly used by thieves targeting services. A crypto mixer is a service that collects, pools and pseudo-randomly shuffles the cryptocurrencies deposited by many users to obfuscate the origins and owners of the funds.
By contrast, funds stolen from personal wallets tend to interact more with token smart contracts, suggesting a swap. These funds would also flow into sanctioned entities like Garantex, suggesting a Russian perpetrator intersection, or they would move to centralized exchanges, implying less sophisticated laundering techniques.
Featured image by andranik.h90 on Freepik
The post Crypto Crime Surges in 2025, Set to Break Records appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.
Full story here Are you the author?
You Might Also Like
BlackRock’s Bitcoin ETF Becomes Top Revenue Driver, Surpasses S&P 500 Fund
2025-07-16
BlackRock’s bitcoin exchange-traded fund (ETF) is becoming a major revenue generator for the asset manager.
According to Bloomberg, the roughly US$75 billion iShares Bitcoin Trust ETF (IBIT) earns an estimated US$187.2 million in annual fees at a 0.25% expense ratio, surpassing the US$187.1 million from the firm’s core iShares S&P 500 ETF (IVV). IBIT is now the third highest revenue-generating ETF for BlackRock across nearly 1,200 funds, says Eric Balchunas, a senior ETF analyst for Bloomberg.
BlackRock is the world’s largest asset manager with US$11.5 trillion in assets under management (AUM) as of 2024. Its long-established IVV fund, launched in 2000 and based on the S&P 500 index, is one of its cornerstone offering, managing around US$624 billion in assets and charging an ultra-low
Despite Major Thefts, Crypto Adoption and Wealth Hit New Highs
2025-07-10
The global cryptocurrency market saw some volatility in the first half of 2025, marked by major hacks but also an increase in bitcoin millionaires and wider adoption of bitcoin ATMs, according to a new report by Finbold, a finance and crypto news and data platform.
A total of US$2.24 billion was stolen in crypto hacks in H1 2025, driven by major incidents at Bybit, Cetus Protocol, and Libra:
Crypto exchange Bybit lost US$1.5 billion to North Korean hackers. The funds were taken from a “cold wallet” stored offline used for ether tokens. The FBI links this attack to North Korea’s “TraderTraitor” cyber operations.
Decentralized exchange (DEX) Cetus Protocol lost about US$230 million due to a contract vulnerability. The Cetus Protocol, which operates on the Sui and Aptos blockchains, is
Turkish Bank Garanti BBVA Kripto Partners with Wyden to Enhance Digital Asset Trading
2025-06-23
Wyden, a Zurich-based provider of institutional digital asset trading infrastructure for regulated institutions, has formed a strategic partnership with Garanti BBVA Kripto, a subsidiary of Garanti BBVA, one of Turkey’s largest banks.
The collaboration aims to enhance Garanti BBVA Kripto’s digital asset trading services for both retail and corporate clients.
Through the partnership, Garanti BBVA Kripto will offer trading pairs in Turkish Lira and US Dollar, alongside cryptocurrency-to-cryptocurrency trades.
This is expected to broaden local market access to digital assets and support a more seamless trading experience for Turkish users.
Wyden’s infrastructure integrates multiple liquidity sources to support optimal price discovery and best execution, in line with evolving regulatory
Stablecoins Gain Ground in Finance, Key Trends Include Yield Products, Cross-Border Payments
2025-06-13
Stablecoins are rapidly evolving from a niche vertical in the cryptocurrency ecosystem into a foundational element of the global financial system.
A new analysis by CB Insights, in partnership with industry player Stablecon, looks at this burgeoning ecosystem, highlighting key trends emerging in this industry, and mapping the sector’s top players.
One of the main trends outlined in the report is the increased participation of traditional financial institutions, drawn by stablecoins’ combination of fiat-like price stability with the speed, efficiency, and programmability of blockchain technology. Notably, Mastercard and Visa now support stablecoin transactions. Meanwhile, established banks such as France’s Societe Generale and Vantage Bank from the US have begun issuing their own
Crypto Adoption on the Rise, Driven by Europe, Younger Demographics
2025-06-13
Cryptocurrency adoption has increased remarkably over the past year, driven by European customers, and younger generations. according to a new survey commissioned by Gemini. Positive developments, including the launch of US cryptocurrency exchange-traded funds (ETFs) and pro-crypto policies from the Trump administration, have also contributed to rising confidence and interest in digital assets, the study found.
Conducted in H1 2025, the research polled more than 7,200 consumers in the US, the UK, France, Italy, Singapore, and Australia. It sought to assess the level of awareness of cryptocurrencies, motivations for owning and trading cryptocurrencies, general attitudes towards cryptocurrencies, and opinions on recent industry developments.
Europe leads in crypto ownership growth
The survey
Tags: Blockchain,Cryptocurrencies,Featured,newsletter,Security
