Crypto users lost more than $1.38 billion in the first half of 2025 alone, driven by an alarming rise in front-end exploits and seed phrase leaks, according to a new report from blockchain intelligence firm TRM Labs.
The figure sets a new record for crypto-related theft and exploit volume, marking a sharp increase compared to previous years and highlighting how security threats continue to evolve even as the industry matures.
TRM Labs: A Breakdown of the Losses
The TRM Labs report details over 160 incidents globally, with the majority targeting decentralized applications, web wallet front ends, and private key storage.
Source: TRM Labs
The most damaging attacks came from:
- Phishing-style front-end hijacks, where users unknowingly interacted with malicious interfaces
- Seed phrase thefts, often triggered by fake wallet recovery tools or malware
- Smart contract exploits, though fewer than in previous years
The combined losses reached $1.38B by June, with over $600M of that stemming from compromised seed phrases.
“Attackers are no longer just exploiting code—they’re exploiting users,” TRM Labs stated in the report.
Front-End Attacks: The New Meta for Exploiters
One of the most worrying trends in crypto hacks 2025 is the rise of front-end manipulation. By compromising DNS records, injecting malicious scripts, or hosting fake UI replicas, hackers trick users into signing transactions that drain their wallets.
Some incidents saw entire DeFi protocols affected for hours before detection. In others, attackers used impersonation campaigns via Telegram bots or Google Ads to lure users into phishing traps.
According to TRM Labs, this tactic is becoming more profitable and harder to detect than traditional contract exploits.
Seed Phrases Still the Weakest Link
Despite ongoing education efforts, seed phrase leaks continue to account for the majority of user-level losses. In 2025, malware kits disguised as wallet tools, browser extensions, and even mobile apps contributed to widespread seed thefts.
The report cites a growing market for “recovery scams” targeting MetaMask and Ledger users, many of whom unknowingly entered their 12-word phrases into malicious forms.
Security experts warn that even air-gapped setups are vulnerable if users fall for social engineering.
Which Chains Were Targeted?
TRM Labs notes that Ethereum and BNB Chain were the most exploited ecosystems, with significant losses also reported on Arbitrum, Solana, and Base. Attackers focused on liquidity-heavy platforms and token bridges with high user traffic.
Protocols offering fast bridging, staking, or wallet-free login were among the most frequently targeted.
Notably, centralized exchanges reported fewer major breaches compared to 2022–2023, indicating that the attack surface has shifted toward user-centric infrastructure.
Final Thoughts: Crypto Hacks 2025 Redefine Risk Landscape
The data from TRM Labs shows that crypto hacks in 2025 are evolving beyond technical code flaws. Attackers are leveraging psychology, brand impersonation, and social engineering at scale. As new chains emerge and user adoption increases, platforms will need to invest heavily in front-end security and wallet-level protections.
The $1.38B in losses is a warning sign: in crypto, a single click can still cost everything.
