Crypto crime surges to record levels in 2025

The cryptocurrency industry faces a record-breaking year for theft in 2025, with losses surpassing $2.17 billion by mid-July, according to a Chainalysis report. The amount stolen so far has surpassed the total for all of 2024, highlighting a concerning increase in digital asset crime.

A large proportion, around $1.5 billion, stems from the North Korea-linked Bybit hack, which accounts for nearly 70% of thefts targeting crypto services this year.

While centralised exchanges remain prime targets, personal wallets now represent almost a quarter of stolen funds. The report highlights a rise in violent ‘wrench attacks,’ where criminals coerce Bitcoin holders into revealing private keys through threats or physical force.

Kidnappings of crypto executives and family members have also increased, with 2025 expected to double the number of such physical assaults compared to previous years.

Sophistication in laundering stolen crypto varies depending on the target. Hackers focusing on exchanges use advanced techniques like chain-hopping and mixers to obscure transactions.

Conversely, attackers targeting personal wallets often employ simpler methods. Interestingly, criminals are holding stolen assets longer and are willing to pay fees up to 14.5 times higher than average to swiftly move illicit funds and avoid detection.

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