The cryptocurrency sector faced significant security challenges in August 2025, with reported losses from hacking incidents totaling $163 million. According to PeckShield, a blockchain security company, hacks have surged by 15% since July, resulting in 16 major attacks targeting investors, protocols, and exchanges.
The most substantial theft involved $91 million in Bitcoin, marking the largest individual loss of the month. PeckShield confirmed that the stolen funds were directed to a long-term Bitcoin holder, whose wallet was compromised. The attacker managed to access the investor’s wallet and gain control over substantial amounts of BTC. This incident highlights the escalating threat to crypto platforms and their users, even as the industry implements enhanced security measures.
Major Crypto Thefts Impact Investors and Exchanges
In addition to the Bitcoin theft, BtcTurk, a prominent cryptocurrency exchange based in Turkey, reported a breach resulting in losses estimated between $48 million and $54 million. This attack targeted the exchange’s hot-wallet infrastructure, which is designed for quick transactions but often poses security risks. When combined with a June breach that resulted in losses of $54 million, BtcTurk’s total losses exceed $100 million this year.
Other notable breaches included ODIN•FUN, which lost $7 million, BetterBank.io with losses of $5 million, and CrediX Finance, which lost $4.5 million. Each incident was attributed to unauthorized fund transfers linked to vulnerabilities in access controls.
Growing Security Challenges Highlighted in Mid-Year Analysis
The mid-year analysis by PeckShield revealed a disturbing trend: the average value of exploits in 2025 has risen to $7.18 million, up from $3.1 million in 2024. The report indicated that many of the losses stemmed from access control failures, including stolen personal keys and unsecured smart contract approvals. Furthermore, it noted that 23% of attacks employed social engineering tactics, where hackers impersonate trusted parties to manipulate users and bypass security measures.
Despite efforts to track and recover funds, only 78% of the stolen money has been successfully retrieved. Additionally, some attacks have been traced back to state-sponsored groups, including the notorious Lazarus Group from North Korea. The ongoing hacking spree emphasizes the urgent need for improved security protocols within the cryptocurrency industry to protect investors and platforms alike.
