The cryptocurrency world is witnessing a disturbing surge in thefts during the first half of 2025, driven by both sophisticated cyberattacks and a notable increase in physical violence targeting crypto holders. According to a recent report by blockchain analysis firm Chainalysis, $2.17 billion has already been stolen from crypto services this year, surpassing the total amount stolen in all of 2024. This alarming trend, which is projected to reach $4 billion by year-end, highlights the evolving and increasingly dangerous landscape of crypto crime.
Billions Lost in High-Profile Hacks
A significant portion of the stolen funds from crypto services can be attributed to the massive cyberattack on Dubai-based crypto exchange Bybit in February. This incident, orchestrated by North Korea-linked hackers, resulted in a staggering $1.5 billion heist, making it the largest crypto theft in history. This single event accounts for approximately 69% of all funds stolen from services this year, dramatically impacting the overall theft figures. The overall combined value of digital tokens stolen from both crypto platforms and individuals has already exceeded $2.8 billion, rapidly approaching last year’s total of $3.4 billion.
The Rise of Physical Attacks on Crypto Holders
Beyond large-scale cyber exploits, Chainalysis reports a concerning spike in attacks on individual crypto wallets, which now account for over 23% of total thefts. Alarmingly, attackers are increasingly resorting to physical violence and coercion to gain access to funds. This emerging trend of “wrench attacks”—where physical violence or threats are used to force victims into revealing access to their crypto—is becoming a disturbing facet of crypto crime.
Recent high-profile cases underscore this chilling reality. In January, David Balland, a co-founder of crypto wallet firm Ledger, and his wife were kidnapped from their home in France. The attackers resorted to extreme violence, cutting off Balland’s finger and sending footage to his co-founder as part of a ransom demand. Similarly, in May, the father of a crypto entrepreneur was abducted in broad daylight by masked men who demanded a multi-million euro ransom and also resorted to physical mutilation before police intervention secured his release.
Factors Driving the Increase in Crypto Crime
Eric Jardine, cybercrime research lead at Chainalysis, attributes the overall rise in crypto-related thefts to the increasing adoption of cryptocurrencies and their price appreciation. With more services and users entering the crypto ecosystem, there are naturally more targets for criminals. Furthermore, as crypto asset values rise, individuals and services hold more USD value, making them more attractive targets for theft, even if the absolute number of assets stolen remains relatively constant.
Jardine also suggests that the uptick in physical attacks on individual crypto holders may be a consequence of improved security measures implemented by crypto trading services. As platforms become more secure, malicious actors might shift their focus to individual wallet holders, trading off the potential for a single large-scale heist in favour of a greater number of smaller, but often more violent, victimisations. The growing trend of crypto influencers publicly flaunting their wealth on social media platforms also inadvertently attracts the attention of criminals, although Jardine emphasises the importance of not blaming victims for these heinous acts.
