Despite this year being only halfway through, hackers have already stolen more crypto this year than in all of last year.
North Korea's Lazarus Group is responsible for the largest theft of the year, after stealing $1.5 billion from Bybit.
Personal wallet thefts now account for over 23% of all stolen crypto.
Physical “wrench attacks” are rising fast and are bringing real-world violence into digital finance.
Cryptocurrency crime is on the rise at an alarming rate this year. According to a new report from blockchain analytics firm Chainalysis, this year could see more crypto theft than any previous year.
Just halfway through, more than $2.17 billion in digital assets have already been stolen. This stands as more than the entire amount stolen last year and is even more than the infamous 2022 record of $3.8 billion.
If current trends hold, crypto thefts this year could top $4.3 billion, making it the worst year in history for cryptocurrency-related crime.
The most damaging incident so far this year was the $1.5 billion hack of Bybit, carried out by the Lazarus Group. This single event alone is higher than the group’s entire haul from the whole of last year, and sets a new high for crypto theft from a single platform.
Crypto thefts by year | Source: Chainalysis
The Lazarus Group has continued to rely on social engineering tactics to attack their targets including fake job offers, impersonated employees and other techniques.
These methods have proven to be effective despite the rise in cybersecurity awareness across the industry.
According to Chainalysis, North Korea is leading the surge in worldwide crypto crime, and is using stolen funds to bypass international sanctions. Even more disturbingly, it is using these funds to support its missile and nuclear programs.
While billion-dollar hacks make headlines, there is another disturbing rise in personal wallet theft.
According to a recent report from Chainalysis, 23.35% of all crypto stolen in 2025 so far has come from individual wallets. This is a massive jump compared to previous years.
Personal wallet losses on the rise | Source: Chainalysis
Among the most alarming trends is the increase in “wrench attacks,” where criminals use physical violence, intimidation or threats to force victims to surrender their crypto. These attacks are especially dangerous because they bypass even the most secure defenses.
Chainalysis warns that because of the relative success of these attacks, they could double in frequency compared to the next highest year on record. Even worse, the real number may be even higher due to underreporting. In many cases, victims choose to remain silent out of fear or embarrassment.
Chainalysis notes that wallet-targeting criminals tend to have less complex tactics than their company-hacking counterparts.
Despite this, they are managing to steal large amounts and often leave the funds sitting untouched on-chain. At the time of writing, Chainalysis’ report shows that $8.5 billion in stolen crypto from personal wallets are unmoved.
This is more than seven times the amount sitting from stolen service funds ($1.2 billion).
This year, the cost of laundering stolen crypto has skyrocketed. Criminals are now paying up to 14.5 times the average blockchain transaction fee just to move their funds quickly before they can be traced or frozen. Even as general blockchain fees have dropped, the premium for laundering has increased by 108%.
This urgency shows that there is rising pressure on cybercriminals to offload their gains before authorities catch up.
Through it all, Bitcoin is the top choice for these cybercriminals. With Bitcoin leading the charge, attackers are looking at other non-EVM chains like Solana, which have seen a rise in theft-related activity.
Interestingly, Chainalysis observed that non-Bitcoin holders are targeted more often, possibly because their behavior or wallet storage behaviour makes them easier prey.
Overall, the first half of 2025 has set the stage for what may become the worst year for crypto crime on record.
As thefts climb past $2.17 billion, the crypto space is faced with new and old threats alike. From billion-dollar exchange hacks to wrench attacks against individuals, criminals are changing their tactics, and the crypto industry needs to catch up.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.