Crypto exploits skyrocket: hackers drain $163M in August alone

The latest figures from blockchain security firm PeckShield reveal that crypto exploits surge continued in August 2025, with $163 million lost to hacks and exploits which is a 15% increase from July’s $142 million. The losses were spread across roughly 16 incidents, though the bulk came from a few high-profile breaches.

The most damaging case involved a long-time Bitcoin (BTC) holder, who saw $91.4 million drained in a single attack. Meanwhile, Turkey’s largest exchange, BtcTurk, suffered yet another devastating hit, reporting a breach between $48–54 million on August 18 tied to compromised hot-wallet keys.

The incident marked BtcTurk’s second major compromise in just over a year, following a $54 million theft in June 2024. Combined, the platform has now lost more than $100 million to security failures. PeckShield noted laundering patterns consistent with the notorious Lazarus Group, a North Korea-linked cybercrime syndicate often tied to large-scale crypto heists.

Other notable incidents included ODIN•FUN ($7 million), BetterBank.io ($5 million), and CrediX Finance on the Sonic blockchain ($4.5 million). The CrediX case highlighted the increasing sophistication of attackers, who exploited both access-control flaws and social engineering to trick signers into approving malicious transfers.

“Each new incident shows how cybercriminals are targeting not just technology, but people,” — Jack Wu, Head of Research, PeckShield. “As crypto exploits surge, investors need to recognize that infrastructure weaknesses and human error are now equally in play.”

Severity of attacks rises in 2025

The August breaches underscored a broader trend observed throughout 2025: fewer attacks overall, but far more destructive when they occur. PeckShield’s mid-year report found that the average loss per exploit in H1 2025 rose to $7.18 million, more than double the $3.1 million average seen in H1 2024.

Access-control vulnerabilities including stolen private keys and malicious approval requests accounted for more than 78% of total losses. Social engineering made up another 23%, a shift that analysts say demonstrates how attackers are evolving beyond purely technical exploits.

“Hackers are no longer only breaking systems; they’re breaking trust,” — Carla Mendes, Cybersecurity Analyst at Chainalysis. “The fact that crypto exploits surge despite stronger technical defenses shows why social engineering is becoming the weapon of choice.”

Recovery rates remain low, with just 7–8% of stolen assets retrieved, according to PeckShield. The speed of laundering plays a critical role: many stolen funds are moved through mixers and cross-chain bridges within hours, making recovery efforts almost impossible.

Geopolitical fingerprints deepen the risk

Another striking pattern is the continued involvement of state-affiliated groups. PeckShield’s August report attributed a significant portion of losses to Lazarus and other geopolitically motivated actors, who regularly leverage advanced laundering techniques to obscure stolen funds.

The growing intersection of crypto crime and geopolitical strategy complicates enforcement. Analysts argue that crypto exploits surge is not only a financial risk but also a national security concern, with stolen assets often routed into state-funded programs.

“Subsidizing cybercrime has become part of the geopolitical playbook,” — Michael Green, Policy Advisor, U.S. Treasury Department. “When crypto exploits surge, we are not just talking about investor losses — we’re talking about financing threats that cross borders.”

Industry calls for stronger defenses

With August’s $163 million figure adding to an already troubling year, security experts are urging exchanges, developers, and investors to raise defenses against increasingly complex attack strategies. Recommended measures include multi-signature wallets, AI-driven anomaly detection, and greater intelligence-sharing across the industry.

The push for stronger collaboration comes as investors absorb mounting losses. While millions are occasionally frozen or recovered, billions more vanish into obfuscation channels each year. For many retail and institutional participants, the message is clear: vigilance must be treated as a first line of defense.

The crypto exploits surge of 2025 underscores how quickly the threat landscape is evolving. From access-control breaches to sophisticated social engineering, the industry faces a critical juncture where security strategies must adapt or risk falling further behind.

For investors, the lesson is stark: as crypto exploits surge, safeguarding assets requires not only trusting platforms but also adopting personal security practices. Without both, the financial and reputational toll of 2025’s growing wave of breaches will only deepen.