2025 Set to Become Worst Year Ever for Crypto Theft as North Korean Hacks Surge

Key Insights:

• Over $2.17 billion has been stolen from crypto platforms this year, which is already more than last year’s.
• The Lazarus Group’s $1.5 billion Bybit hack accounts for 69% of all crypto theft this year.
• Wrench attacks and personal wallet thefts now make up nearly a quarter of stolen funds.

Crypto theft is escalating at a record-breaking pace this year, with hackers stealing more than $2.17 billion in just the first half of the year. This is more than all of the funds stolen in the previous year.

According to a mid-year report by blockchain analytics firm Chainalysis, if current trends continue, the total could soar past $4.3 billion. This could easily make this year the worst for crypto-related crime in history.

North Korea’s Lazarus Group Behind Record-Breaking Crypto Thefts

According to Chainalysis, the state-sponsored Lazarus Group, has been responsible for the most brutal crypto crimes so far. Their $1.5 billion hack of the Bybit exchange alone accounted for nearly 69% of all crypto funds stolen this year.

This single incident is already more than Lazarus’s total haul from the previous year, which previously stood as their most lucrative year. 

According to Chainalysis, the group continues to rely on social engineering tactics to hack crypto companies. These methods include posing as fake job applicants or employees, which allow them to gain internal access and steal funds from within.

Rise of Wrench Attacks

While large-scale exchange attacks have made headlines, there is an even more disturbing trend. According to Chainalysis, there is an ongoing rise in physical violence against individual crypto holders. 

These so-called “wrench attacks,” where criminals physically force victims into handing over access to their wallets are becoming more and more common.

This year alone, personal wallet hacks now account for over 23% of all stolen funds. According to Chainalysis, this rise is due to a combination of better security measures at centralized exchanges, and hackers choosing to go after less-secure individuals.

Victims of wrench attacks are not just losing funds. Some are face threats, physical harm and even kidnapping. While the actual amount stolen so far is believed to be underreported, Chainalysis warns that this year could see double the number of physical attacks in any previous year.

Security Lapses Leave Billions of Stolen Funds On-Chain

Interestingly, the report also shows the behavior of different types of thieves. 

Hackers that target exchanges and companies typically launder funds quickly, using mixers and other tactics. On the other hand, those stealing from personal wallets often lack such tools or knowledge.

At the time of the report, personal wallet attackers are sitting on approximately $8.5 billion in on-chain funds, compared to just $1.2 billion in stolen exchange funds. This shows that many of these attackers are amateur or opportunistic. Moreso, they likely lack the resources to fully launder their stolen assets.

Overall, as crypto adoption continues to grow, so do the risks. Chainalysis’s latest data serves as a wake-up call for everyone. While most of the year is still ahead, there is an ongoing need for urgent action.