Aug 2025 Web3 Security Incidents Cost $82.9M: Wallet & DeFi Risks
In August 2025, Web3 security incidents resulted in total losses of $82.89 million. SlowMist recorded nine major hacks causing $70.73 million in stolen funds, of which $6.3 million was frozen or recovered. The Scam Sniffer platform reported 15,230 phishing victims losing $12.16 million. Major breaches included BtcTurk’s hot wallet hack on August 14, costing $54 million; ODIN.FUN’s price-manipulation exploit on August 12, draining 58.2 BTC (~$7 million) with partial recovery; PulseChain’s BetterBank attack on August 27, resulting in a $5 million minting exploit (about $2.7 million pDAI returned); and Credix’s admin wallet takeover on August 4, siphoning $4.5 million amid exit-scam claims. These recurring Web3 security incidents highlight hot wallet vulnerabilities and DeFi contract risks. Traders should watch for contract flaws and adopt best practices like real-time monitoring, layered wallet segregation, and regular audits to protect assets.
Bearish
Large-scale breaches and phishing losses undermine confidence in Web3 platforms. In the short term, traders are likely to de-risk by reducing positions in assets tied to hot wallet exposures, particularly BTC and DeFi tokens, leading to sell pressure and increased volatility. Over the long term, heightened demand for security audits, wallet segregation, and real-time monitoring may strengthen protocol resilience and attract more cautious capital. Nonetheless, until robust security measures become standard, the prevailing sentiment remains bearish.