Cryptocurrency hackers have persisted in their efforts to steal user funds, though the amount stolen in January showed a decline from the previous year, indicating a potentially positive development for the cryptocurrency industry.
In January, crypto hackers expropriated over $73 million worth of digital assets across 19 separate incidents, which represents a 44% reduction from the $133 million stolen in January of the preceding year.
However, the $73 million stolen in January marked a substantial ninefold increase from December, during which only $3.8 million in cryptocurrency was stolen, according to a report by Immunefi dated January 30 and shared with Cointelegraph.
Major Hacking Events
The most significant theft occurred at the Singapore-based crypto exchange Phemex, where hackers made off with over $69 million. The second-largest was a $2.5 million heist at the Moby Trade options platform.
Despite the decrease in January, crypto hacks continued to undermine mainstream trust in the sector, with the industry losing $2.3 billion over 165 incidents in 2024, marking a 40% increase from 2023.
Centralized finance (CeFi) platforms bore the brunt in January 2025, accounting for $69 million or 93% of the total losses, while decentralized finance (DeFi) platforms lost $4.8 million across 18 incidents, constituting 6.5% of the total.
Vulnerabilities and Security Measures
Mitchell Amador, founder and CEO of Immunefi, highlighted that CeFi platforms are likely to remain prime targets due to infrastructure vulnerabilities, particularly those related to private key security. Amador emphasized the importance of adopting a multi-layered security approach, enhancing key management, and improving operational security practices. He also recommended the creation of bug bounty programs and the implementation of real-time threat detection tools to bolster security.
Immunefi is currently offering over $181 million in bug bounties to encourage ethical hacking and help protect approximately $190 billion in crypto user funds.
Author’s Opinion
The ongoing challenges posed by crypto hackers highlight the urgent need for robust security measures within the cryptocurrency industry. As hacking techniques evolve, the implementation of comprehensive security strategies, including advanced key management and employee training, becomes indispensable. These measures not only protect funds but also restore and enhance user trust, which is vital for the continued growth and acceptance of cryptocurrencies. Improved security protocols can significantly deter potential hackers and mitigate the impact of any successful attacks, thereby sustaining the industry’s momentum.
