Crypto Crime 2025: Why Hacks, Theft, and Violence Are Rising Fast

Surging Crypto Crime Exposes Users to Advanced and Disturbing Threats

Could 2025 become the most dangerous year in crypto history? From billion-dollar exchange hacks to fake Zoom scams, kidnappings, and even murders, crypto crime is no longer limited to online theft. As capital flows return to digital assets, attackers are adapting faster than ever, turning cryptocurrencies into a prime target for cybercriminals and organized crime groups.

Looking at the data helps explain why Crypto Crime 2025 feels worse than previous years.

Source: DeepStrike

• 2022: $3.8 billion stolen (Chainalysis peak year)
• 2023: ~$1.7 billion stolen (54% decline)
• 2024: ~$2.2 billion stolen (21% increase)
• 2025 (mid-July): ~$2.17 billion already stolen

Additional reports from CertiK, SlowMist, Kroll, and Immunefi confirm that 2025 has the highest first-half losses on record, driven by fewer but far larger attacks. Q1 2025 alone saw $1.64 billion in losses, making it the worst quarter ever.

Variants in Steeling: Not Limited to Any Specific Area

The trends in the space are more worrisome than the data itself. Attackers now use advanced tactics, approaching users in different ways, and not limited to online platforms. Some of the most frequently advancing patterns are: 

1. Social Engineering and Malware Attacks

One of the fastest-growing forms of Crypto Crime is social engineering, where attackers manipulate victims into infecting their own devices – exploit human trust.

The most surfing example is the North Korean-linked hacker’s fake Zoom meeting scams. Users are sent telegram invites from familiar contacts and asked to join Zoom calls. During calls, they share fake “patch” files (for clear voice) that steal passwords, private keys, and Telegram access. It has already resulted in over $300 million in stolen digital assets. 

2. Smart Contract Exploits and Protocol Vulnerabilities

Another major category involves exploiting vulnerabilities in smart contracts, especially older or upgraded contracts that were not fully audited.

After the year’s largest theft happened on Bybit ($1.5B) and Upbit ($30M), the Ribbon legacy DOV vaults also compromised and resulted in losing around $2.3M. Beanstalk ($181M), Sonne Finance ($20M), and many more experienced the same. 

3. Exchange and Custodial Wallet Breaches

According to Chainalysis, many of the largest thefts in 2024 and 2025 were caused by private key compromises at centralized exchanges, not DeFi exploits. These attacks often involve phishing, insider access, or infrastructure breaches, leading to losses in the hundreds of millions.

5. Physical Crime: Kidnapping, Torture, and Murder

A disturbing evolution in Crypto Crime 2025 is the rise of physical violence linked to crypto theft, commonly referred to as “wrench attacks.”

• Spanish police recently dismantled a network linked to a cryptocurrencies “wrench attack” that resulted in kidnapping and murder as attackers tried to force victims to unlock wallets.
  

• In Vienna, police arrested two men connected to a killing tied to crypto wallet theft, where victims were lured and forced to reveal passwords.
  

• In the U.S., a crypto investor was charged in New York in a brutal kidnapping and torture plot, where a man was allegedly beaten, shocked, and dangled from a height during a dispute involving cryptocurrency.

• In a most troubling case, the 21 years old son of a Ukrainian deputy mayor was brutally beaten and burned alive in his car for his 200K crypto amount.

Safety Was Also in Evolution: Actions Taken by Authorities

In response, exchanges and protocols have started tightening controls. Several centralized exchanges have expanded emergency freeze policies, improved wallet monitoring, and strengthened coordination with blockchain analytics firms. 

Law enforcement agencies worldwide are also increasing enforcement. Courts have begun issuing harsher sentences in high-profile crypto fraud cases – Do Kwon, co-founder of Terraform Labs, whose stablecoin collapse wiped out billions, was sentenced to 15 years in prison for massive fraud that harmed investors worldwide. 

FTX founder Sam Bankman is also serving 25 years, while Celsius founder Alex Mashinsky received 12 years for fraud, sending a clear signal that digital asset crime is no longer treated lightly.

User Safety Guide: How to Protect Yourself 

As the crimes surge rapidly, user-taking measures are as important as the authorities because at all cost it’s the customer who actually loses the amount. To stay safe:

• Never install files shared during unexpected calls or chats

• Use hardware wallets for long-term storage

• Enable 2FA everywhere

• Avoid sharing digital asset holdings publicly

• Verify contracts, links, and platforms independently
  

If malware is suspected, disconnect immediately, move funds using a clean device, reset credentials, and wipe the infected system.

Along with awareness, reporting crypto-related crime is equally important. If you become a victim, do not stay silent due to fear of reputation damage or social stigma. Timely reporting helps investigators track patterns, recover funds, and prevent further harm to the wider community.