Despite an increase in account intrusions, cryptocurrency hack losses decreased to $98.19 million in January 2025 from $160 million in the same month last year, according to SlowMist data.
The report highlights that a total of about $98.19 million was lost as a result of 40 hacking attacks in January. Out of this loss of around $87.94 million, around $1.47 million was recovered, according to the SlowMist Hacked Database.
The data comes as a slight sense of relief for the crypto market space which has seen a significant rise of illicit activities related to crypto in the past couple of years.
Hacking Losses Fall to $98 Million in January
The report highlights that the hacking instances were caused by private key breaches, account compromises, and contract vulnerabilities. Additionally, 9,220 victims fell victim to phishing attempts this month, resulting in losses of $10.25 million, according to the Web3 anti-scam platform Scam Sniffer.
Apart from hacks, incidents of account compromise have also increased recently. The SlowMist Hacked Database shows that 21 account breaches happened in January, which makes up over half of all occurrences that were reported.
Notably, accounts that featured political content or people were specifically targeted.
Malicious actors and hackers have started promoting meme currencies on social media by taking advantage of users’ FOMO to raise money before quickly withdrawing it.
Also Read: JupiterDAO Recovers Official X Account After Unauthorized Hack and Launches Security Audit
Top 5 Hacks of January 2025
The report shows that the top five data breach events that happened in January included Phemex, NoOnes, AdsPower, Moby and Organge finance.
Interestingly, despite the amount of money lost with these breaches being less than last year, it is worthy noting that the month has seen a rise in cases. This also makes investors worried about what the rest of the year will have instilled.
Why are Crypto Hacks Rising?
Numerous cryptocurrency platforms and exchanges continue to face security flaws, which makes them easy targets for hackers. Users are also at risk of theft due to flaws in wallet systems, DeFi protocols, and smart contracts.
Furthermore, many platforms do not use industry-standard security measures due to a lack of extensive regulatory monitoring, endangering users and investors.
Sophisticated social engineering and phishing schemes trick unwary users into disclosing private keys and personal information.
Furthermore, it is challenging to trace and retrieve stolen money due to the decentralized structure of cryptocurrency transactions. Hackers are increasingly taking advantage of these security flaws as the cryptocurrency market expands and draws more players. This pattern emphasizes how urgently the industry needs more thorough regulatory frameworks and stronger protections.
Also Read: Crypto Exchange Xeggex Locks Down Wallets After CEO’s Account Hacked, Users Panic