Crypto Security War: $2.47B H1 Hacks and $1.4B Bybit Breach
Crypto security remains under siege as CertiK reports $2.47 billion in crypto hacks during H1 2025, a 3% increase year-on-year. In Q2, 144 incidents caused $800 million in losses—a 52% quarterly drop—yet February’s $1.4 billion Bybit breach drove overall growth. Nearly half of security failures stem from operational risks such as private-key compromises and social engineering. Recent cases include a $3 million USDT phishing loss and a $900 000 malicious transaction. CertiK co-founder Ronghui Gu warns that as technical defenses strengthen, attackers will increasingly exploit human vulnerabilities. He predicts crypto security losses may exceed $1 billion next year, underscoring the need for human-centric measures alongside code audits.
Bearish
The surge in crypto hacks and the record $1.4 billion Bybit breach heighten market risk and undermine trader confidence, creating bearish pressure in both the short and long term. In the short term, heightened volatility and risk aversion are likely as investors reassess exposure to vulnerable platforms and tokens—especially those reliant on human-managed private keys like USDT. Over the long term, unless human-centric security measures evolve alongside technical audits, persistent losses could stifle institutional inflows and slow market growth, further reinforcing a cautious trading environment.