$1.4B IN CRYPTO STOLEN IN FIRST FIVE MONTHS OF 2020, SAYS CIPHERTRACE

Imagine waking up one morning to discover that your entire cryptocurrency portfolio has vanished. On Tuesday, the blockchain analytics firm said fraudsters, malicious hackers and thieves have amassed $1.36 billion in ill-gotten crypto through the first five months of 2025. CipherTraceA chilling thought, isn't it?Unfortunately, this nightmare became a reality for many in the first five months of 2025. Bybit's CEO announced that 27.95% of the $1.4 billion lost in a hack by the North Korean Lazarus Group is untraceable. The stolen funds were moved through mixers and cross-chain swaps to obscureAccording to a report released by digital asset intelligence firm CipherTrace, a staggering $1.4 billion in cryptocurrency was stolen through thefts, hacks, and fraud during this period. Amid Pandemic, Crypto Crime Surges in First 5 Months -CipherTrace; Losses from cryptocurrency thefts, hacks, and frauds soared to nearly $1.4 billion from the beginning of the year until the end of May, a report from CipherTrace showed.This monumental loss has positioned 2025 as potentially the second-worst year on record for crypto crime, surpassed only by the unprecedented $4.5 billion lost in 2025. On Tuesday, the blockchain analytics firm said fraudsters, malicious hackers and thieves have amassed $1.36 billion in ill-gotten crypto through the first 5 months of 2025. CipherTrace published the findings in its June 2025 crypto anti-money laundering and crime report.The report highlights a disturbing trend, emphasizing the growing sophistication of cybercriminals and their ability to exploit vulnerabilities in the burgeoning digital asset ecosystem. Ethereum just suffered a $1.4B hack, draining Bybit s cold wallet in one of the biggest crypto exploits ever. Now, the crypto world is split should EthereumWhile legitimate cryptocurrency use continues to rise, the report serves as a stark reminder of the ever-present dangers lurking in the shadows of the blockchain. $1.4B in Crypto Stolen in First Five Months of 2025, According to CipherTrace Researchers say 2025 is on track to become a second-worst year for cryptocurrency-related thefts, hacks and fraud.The primary culprit?Fraud and misappropriation, accounting for a whopping 98% of the total stolen funds.This article delves into the details of the CipherTrace report, examining the types of crypto crimes prevalent in early 2025, the impact of these losses, and what steps can be taken to mitigate future risks. Researchers say 2025 is on track to become a record-breaking year for cryptocurrency-related thefts, hacks and fraud. Researchers say 2025 is on track to become a record-breaking year for cryptocurrency-related thefts, hacks and fraud. Digital asset intelligence firm CipherTrace released a report on June 2 revealing that in the first five months of this year MoreWe'll explore the rise of DeFi-related thefts and uncover strategies to protect your digital assets in an increasingly complex and perilous landscape.

The Grim Reality: Crypto Crime Statistics of Early 2025

CipherTrace's report paints a sobering picture of the state of crypto crime in the first five months of 2025. It s been a billion-dollar springtime for cryptocurrency criminals, according to CipherTrace.The headline figure – $1.4 billion stolen – is just the tip of the iceberg.Let's break down the key findings:

• Total Stolen: $1.36 billion (reported as $1.4 billion for ease of understanding).
• Primary Culprit: Fraud and misappropriation accounted for 98% of the total.
• Hacks and Thefts: Made up the remaining, smaller percentage of the overall losses.
• Trending Tactics: Coronavirus-inspired fraud, involving luring victims off legitimate platforms into chat rooms for Bitcoin payments, was a prevalent method.
• Potential Second-Worst Year: 2025 is on track to potentially be the second-worst year for crypto-related crimes, behind 2025.

These figures demonstrate a significant challenge for the cryptocurrency industry.While the technology offers immense potential, the inherent anonymity and decentralized nature of digital assets also make them attractive targets for criminals.

Understanding the Types of Crypto Crimes in 2025

The CipherTrace report highlights the diverse range of tactics employed by crypto criminals.It's crucial to understand these methods to better protect yourself from becoming a victim.

Fraud and Misappropriation

As mentioned earlier, fraud and misappropriation were the leading causes of crypto losses in early 2025.This category encompasses a wide range of schemes, including:

• Ponzi Schemes: Promising unrealistically high returns to early investors, funded by subsequent investors.Eventually, the scheme collapses, leaving most investors with significant losses.
• Phishing Scams: Deceiving individuals into revealing their private keys or login credentials through fake websites or emails that mimic legitimate platforms.
• Pump-and-Dump Schemes: Artificially inflating the price of a low-value cryptocurrency through coordinated buying, then selling off their holdings at a profit, leaving unsuspecting investors with worthless assets.
• Exit Scams: Developers of a cryptocurrency project suddenly abandon the project, taking all the funds raised during the initial coin offering (ICO) or other fundraising activities.

Hacks and Thefts

While less prevalent than fraud, direct hacks and thefts still represent a significant threat. CipherTrace says the bulk of 2025 s criminal haul of $1.36 billion was attributable to fraud and misappropriation (98%) while hacks and thefts accounted for the negligible balance. Coronavirus-related frauds and phishing sites abounded and were the MO of choice.These often involve exploiting vulnerabilities in cryptocurrency exchanges, wallets, or blockchain protocols.

• Exchange Hacks: Gaining unauthorized access to cryptocurrency exchanges and stealing funds from user accounts or the exchange's own reserves.
• Wallet Compromises: Gaining access to individual cryptocurrency wallets through malware, phishing, or social engineering.
• Smart Contract Exploits: Identifying and exploiting vulnerabilities in smart contracts to steal funds.

Coronavirus-Related Fraud

The COVID-19 pandemic created new opportunities for fraudsters. Back in June 2025, CipherTrace reported that crypto crime totaled $1.4 billion in the first five months of 2025. That only $500 million has been added to this number over the following five months points to the increasing focus on security by cryptocurrency companies.Many schemes capitalized on the fear and uncertainty surrounding the pandemic, luring victims with promises of quick profits or access to scarce resources. 59 likes, 36 comments - coinscapture on J: News of the day: Crypto Criminals Have Stolen $1.4B In Last Five Months CipherTrace reported tha CoinsCapture on Instagram: News of the day: Crypto Criminals Have Stolen $1.4B In Last Five Months CipherTrace reported that users have lost $1.4 billion in the first five months of 2025 toThese often involved:

• Fake Investment Opportunities: Promoting fraudulent investment schemes related to COVID-19 treatments, vaccines, or related products.
• Charity Scams: Posing as legitimate charities and soliciting donations for COVID-19 relief efforts, only to pocket the funds.
• Phishing Attacks: Sending emails or messages that appear to be from reputable organizations, such as the World Health Organization (WHO), to trick users into revealing their personal information or downloading malware.

The Rise of DeFi-Related Crime

One of the most concerning trends highlighted in the CipherTrace report is the increasing prevalence of crime related to Decentralized Finance (DeFi).DeFi platforms offer a wide range of financial services, such as lending, borrowing, and trading, without the need for intermediaries. ByBit s $1.4 billion is by that measure a far bigger loss and, considering that all crypto thefts in 2025 totaled to $2.2 billion, according to blockchain analysis firm Chainalysis, a stunningHowever, their open-source nature and complex protocols also make them vulnerable to exploits.

CipherTrace noted that half of all thefts in 2025, totaling $129 million, were DeFi-related. In the first five months of 2025, crypto thefts, hacks, and frauds totaled $1.36 billion, indicating 2025 could see the greatest total amount stolen in crypto crimes outside 2025's $4.5 billion. Coronavirus-inspired fraud is generally executed by luring victims off legitimate platforms into chat rooms where payment in bitcoin can beThis significant percentage underscores the growing need for robust security measures and code audits within the DeFi space.

Common DeFi attack vectors include:

• Flash Loan Attacks: Exploiting vulnerabilities in DeFi protocols using flash loans, which allow borrowers to access large amounts of capital without collateral.
• Smart Contract Bugs: Exploiting coding errors or vulnerabilities in smart contracts to manipulate the system and steal funds.
• Governance Attacks: Gaining control of a DeFi protocol's governance system to make malicious changes or steal funds.

Impact of Crypto Crime on the Industry

The rampant crypto crime in early 2025 had significant repercussions for the entire industry. Back in June 2025, CipherTrace reported that crypto crime totaled $1.4 billion in the first five months of 2025. That only $500 million has been added to this number over the following five months points to the increasing focus on security by cryptocurrency companies. Indeed, regulatory agencies in many countries have mandated crypto exchangesThe impact goes beyond just the immediate financial losses suffered by victims.

• Erosion of Trust: High-profile thefts and scams erode trust in the cryptocurrency industry, making it harder to attract new users and investors.
• Increased Regulation: Rising crime rates often lead to increased regulatory scrutiny, which can stifle innovation and make it more difficult for legitimate businesses to operate.
• Damage to Reputation: Crypto crime damages the reputation of the industry as a whole, reinforcing negative stereotypes and hindering its adoption by mainstream institutions.
• Financial Hardship for Victims: Individuals and businesses who fall victim to crypto scams can suffer significant financial hardship, potentially losing their life savings or business capital.

Mitigating the Risks: How to Protect Your Crypto Assets

While the threat of crypto crime is real, there are several steps you can take to mitigate your risk and protect your digital assets.

Security Best Practices

1. Use Strong Passwords: Create strong, unique passwords for all your cryptocurrency accounts. In the first five months of the year, cryptocurrency thefts, hacks and frauds totaled $1.4 billion, and could exceed the 2025 loss of $4.5 billion by year s end, according to a new report.Avoid using the same password across multiple platforms.
2. Enable Two-Factor Authentication (2FA): 2FA adds an extra layer of security by requiring a second verification method, such as a code sent to your phone, in addition to your password.
3. Use Hardware Wallets: Hardware wallets are physical devices that store your private keys offline, making them much more secure than software wallets or exchanges.
4. Keep Software Up-to-Date: Regularly update your operating system, antivirus software, and cryptocurrency wallets to patch security vulnerabilities.
5. Be Wary of Phishing Attempts: Be cautious of suspicious emails, messages, or websites that ask for your private keys or login credentials. CRYPTOCURRENCY CRIME AND ANTI-MNEY LAUNDERING 5 REPORT As of J, bitcoin was just above $35,000 after enjoying an 11% gain during Q2 2025.Always verify the authenticity of any communication before providing sensitive information.
6. Diversify Your Holdings: Don't put all your eggs in one basket. Skip to main content Bitcoin Insider. MenuDiversify your cryptocurrency holdings across multiple wallets and exchanges to minimize your risk.

Due Diligence and Research

Before investing in any cryptocurrency project or using a DeFi platform, it's crucial to conduct thorough research and due diligence.

• Research the Project: Understand the project's goals, technology, team, and community. On June 2, CipherTrace digital asset intelligence firm published a report about crypto scammers. Based on that report, the value of stolen funds throughLook for red flags, such as unrealistic promises, anonymous developers, or a lack of transparency.
• Read the Whitepaper: Carefully review the project's whitepaper to understand its technical details, tokenomics, and roadmap.
• Audit Smart Contracts: Check if the project's smart contracts have been audited by reputable security firms.Audits can help identify and address potential vulnerabilities.
• Check the Team's Reputation: Research the team members' backgrounds and experience. Researchers say 2025 is on track to become a second-worst year for cryptocurrency-related thefts, hacks and fraud. Digital asset intelligence firm CipherTrace released a report on June 2 revealing that in the first five months of this year so far, the value of ill-gotten funds siphoned through cryptocurrency crimes has reached almost $1.4 billion.Look for evidence of past successes or failures.
• Read Reviews: Check online reviews and forums to see what other users are saying about the project or platform.

Staying Informed

The cryptocurrency landscape is constantly evolving, so it's essential to stay informed about the latest threats and security best practices.

• Follow Reputable News Sources: Stay up-to-date on the latest cryptocurrency news and developments by following reputable news sources and industry blogs.
• Join Security Communities: Participate in online security communities and forums to learn from other experts and share your own experiences.
• Attend Security Conferences: Attend cryptocurrency security conferences to learn about the latest threats and mitigation strategies.

ByBit's $1.4 Billion Incident: A Case Study

While the provided snippets don't explicitly detail a *confirmed* $1.4 billion hack of ByBit, they do mention a concerning incident and speculation. In February 2025, the crypto industry faced a surge in hacks and scams, impacting multiple platforms. Notably, ZkLend, a Starknet money-market protocol, was exploited on February 14, losing $9.5 million. Cybersecurity firm Cyvers revealed that the stolen funds were funneled through Ethereum and Railgun, but the latter returned the assets.One snippet alludes to a hypothetical scenario and community debate (""Ethereum just suffered a $1.4B hack, draining Bybit's cold wallet in one of the biggest crypto exploits ever.Now, the crypto world is split..."").Let's analyze this hypothetical (or perhaps, partially reported) event and use it as a learning opportunity.If such a large-scale exploit *were* to occur, here's what we could learn:

• Scale of the Attack: A $1.4 billion loss would be catastrophic, highlighting the vulnerability of even large and seemingly secure exchanges.
• Potential Attack Vectors: The specific method used to compromise ByBit's cold wallet (if it happened as described in the hypothetical statement) would be crucial for understanding the vulnerabilities.Was it a sophisticated hack of the exchange's internal systems, a compromise of private keys, or a vulnerability in the Ethereum network itself?
• Impact on User Trust: A loss of this magnitude would severely damage ByBit's reputation and erode user trust, potentially leading to a mass exodus of users and a significant decline in trading volume.
• Recovery Efforts: How ByBit responded to the incident would be critical. The figure puts 2025 on track to become the second-costliest year in the history of crypto.Would they compensate affected users?Would they enhance their security measures to prevent future attacks?Their actions would determine the long-term impact on their business.

While the actual details surrounding the ByBit situation might be different, the *potential* for such a massive loss underscores the importance of robust security measures across the entire cryptocurrency ecosystem.

Untraceable Funds and the Lazarus Group

One snippet mentions that Bybit's CEO announced that 27.95% of the $1.4 billion lost in a hack by the North Korean Lazarus Group is untraceable.If we extrapolate from this hypothetical incident, it highlights several critical issues:

• The Use of Mixers and Cross-Chain Swaps: Cybercriminals often use mixers (services that obfuscate the origin of cryptocurrency transactions) and cross-chain swaps (exchanging cryptocurrencies between different blockchains) to launder stolen funds and make them more difficult to trace.
• The Sophistication of Cybercriminals: The Lazarus Group is a well-known North Korean hacking group that has been linked to numerous cyberattacks, including cryptocurrency thefts. CipherTrace s latest report, Cryptocurrency Crime and Anti-Money Laundering Report, Spring 2025, claims that crypto-crimes during the first five months of 2025 netted their perpetrators $1.36 billion. At this rate, 2025 could well achieve the dubious distinction of recording the second-highest value in crypto crimes ever recorded.Their ability to successfully launder stolen funds demonstrates their sophistication and resources.
• The Challenges of Cryptocurrency Tracing: While blockchain technology provides a transparent record of transactions, it can still be challenging to trace funds that have been laundered through mixers and cross-chain swaps.This highlights the need for more advanced tracing tools and techniques.

The Role of Regulatory Agencies

The increasing prevalence of crypto crime has prompted regulatory agencies around the world to take a closer look at the industry.Regulatory agencies are increasingly mandating crypto exchanges to implement stricter Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures.

These regulations aim to:

• Prevent Money Laundering: Make it more difficult for criminals to use cryptocurrencies to launder illicit funds.
• Combat Terrorist Financing: Prevent terrorist groups from using cryptocurrencies to finance their activities.
• Protect Consumers: Protect consumers from fraud and scams.

However, the implementation of these regulations can also be challenging, as they can stifle innovation and make it more difficult for legitimate businesses to operate. As legitimate cryptocurrency use goes up, crypto crime as a percentage goes down. 2025 crypto crime was $1.9 billion in 2025, down 57% from 2025 s $4.5 billion. Decentralized finance (DeFi) is the next major threat vector for fraud and money laundering: half of all thefts in 2025, totaling $129 million, were DeFi-relatedFinding the right balance between regulation and innovation is crucial for the long-term success of the cryptocurrency industry.

CipherTrace's Role in Combating Crypto Crime

CipherTrace is a leading provider of cryptocurrency intelligence and security solutions. It s been a billion-dollar springtime for cryptocurrency criminals, according to CipherTrace. On Tuesday, the blockchain analytics firm said fraudsters, malicious hackers and thieves haveThey develop tools and technologies to help exchanges, banks, investigators, regulators, and digital asset businesses trace transaction flows, comply with regulatory requirements, and combat crypto crime.

Their services include:

• Cryptocurrency Anti-Money Laundering (AML) Solutions: Help exchanges and other businesses comply with AML regulations.
• Cryptocurrency Forensics: Help law enforcement agencies investigate crypto-related crimes.
• Blockchain Threat Intelligence: Provide insights into emerging threats and vulnerabilities in the blockchain ecosystem.

By providing these tools and services, CipherTrace plays a vital role in fostering trust and security in the cryptocurrency industry.

Conclusion: Key Takeaways and a Call to Action

The CipherTrace report on the first five months of 2025 serves as a stark reminder of the ever-present threat of crypto crime. news: $1.4B in Crypto Stolen in First Five Months of 2025, Says CipherTrace at Cash Tech NewsThe $1.4 billion stolen underscores the need for heightened security measures, increased due diligence, and greater awareness of the risks associated with digital assets.The rise of DeFi-related crime and the sophistication of cybercriminals highlight the challenges facing the industry.However, by implementing security best practices, conducting thorough research, and staying informed about the latest threats, individuals and businesses can mitigate their risk and protect their digital assets.

Key takeaways include:

• Crypto crime remains a significant threat, with $1.4 billion stolen in the first five months of 2025.
• Fraud and misappropriation are the leading causes of crypto losses.
• DeFi-related crime is on the rise.
• Robust security measures, due diligence, and staying informed are crucial for protecting your crypto assets.

The fight against crypto crime is an ongoing battle. BTCUSD Bitcoin $1.4B in Crypto Stolen in First Five Months of 2025, Says CipherTrace Researchers say 2025 is on track to become a record-breaking year for cryptocurrency-related thefts, hacks and fraud.By working together, the cryptocurrency industry can create a safer and more secure environment for all. CipherTrace develops cryptocurrency Anti-Money Laundering, cryptocurrency forensics, and blockchain threat intelligence solutions. Leading exchanges, banks, investigators, regulators and digital asset businesses use CipherTrace to trace transaction flows and comply with regulatory anti-money laundering requirements, fostering trust in the cryptocurrency economy.Take action today to protect your digital assets and help build a more trustworthy cryptocurrency ecosystem. Start by implementing the security best practices outlined in this article and sharing this information with your friends and family. Let's make cryptocurrency a safer space for everyone!