Crypto crime surge triggers market instability

Bitcoin has dropped from $106,000 to $83,000 amid rising crypto crime, with analysts predicting further declines in the coming weeks.

Crypto hacks have led to over $2.2 billion in losses this year, fuelling market instability and raising concerns over national security.

Crypto markets are facing heightened volatility as illicit activity surges, with hackers stealing over $2.2 billion in 2025 alone. Mintology CEO Zach Burks has described the current period as ‘crime season,’ warning that the increase in thefts is eroding investor confidence and posing a national security threat.

North Korea’s Lazarus Group is linked to a $1.5 billion heist, further shaking the market.

Burks highlighted the impact on meme coins, which have dropped by 56% since December, and Bitcoin, which has fallen from $106,000 to $83,000.

A further decline to $72,000 is possible in the coming weeks. Investors, particularly those holding meme coins, are advised to prepare for continued volatility over the next six weeks.

Regulatory bodies like the SEC and FCA are ineffective in tackling crypto crime, according to Burks. He argues that their bureaucratic approach does little to recover stolen funds or enhance security.

Instead, he advocates for a decentralised, community-led response, urging the industry to build networks of independent investigators who can track illicit transactions and restore trust.

Beyond financial losses, Burks warns that crypto crime is a national security issue. He stresses the need for pragmatic industry leaders to push for solutions that protect investors without excessive government interference.

For more information on these topics, visit diplomacy.edu.