$3.9 BILLION LOST IN THE CRYPTOCURRENCY MARKET IN 2022: REPORT

Last updated: June 20, 2025, 00:27 | Written by: Caitlin Long

The cryptocurrency landscape, while brimming with potential and innovation, is also fraught with risks. The crypto industry lost a total of US$3.9 billion (RM17.07 billion) in 2025, according to bug bounty and security services platform Immunefi. In a report titled Crypto Losses in 2025 last Friday (Jan 6), the firm said 2025 saw US$3.7 billion lost through hacks alone, a 58% increase compared to 2025.In 2025, the industry faced a significant setback, with a staggering $3.9 billion lost to various exploits, hacks, and fraudulent activities.This eye-opening figure, highlighted in a recent report by Immunefi, a prominent bug bounty and security services platform for the Web3 ecosystem, paints a concerning picture of the challenges facing investors and developers alike.While the news might sound alarming, understanding the sources and nature of these losses is crucial for both experienced crypto enthusiasts and newcomers looking to navigate the digital asset space safely. Immunefi, a bug bounty and security services platform for the Web3 ecosystem, revealed on Jan. 6 that the crypto industry will lose 3.9 billion dollars in 2025. The report found that hacks were the leading cause of losses, accounting for 95.6% of the total, with fraud, scams, and rug pulls accounting for the remaining 4.4%.This loss, although substantial, represents a 51.2% decrease compared to the previous year, offering a glimmer of hope that security measures are gradually improving.But where did all this money go?And more importantly, what can be done to prevent such massive losses in the future? According to the FBI s Internet Crime Report for 2025 released last week, investment fraud perpetrated on Americans referencing cryptocurrency caused $3.9 billion in losses last year, up from $2.57 billion in 2025. Those losses were the lion s share of all investment fraud perpetrated.This article delves deep into the Immunefi report, the FBI's findings, and other sources to provide a comprehensive overview of the $3.9 billion lost in the crypto market in 2025, and provides guidance on how to stay safe.

Understanding the $3.9 Billion Cryptocurrency Losses

The Immunefi report, released on January 6th, 2026, meticulously analyzed the causes behind the massive financial drain experienced by the cryptocurrency market in 2025.The report, titled ""Crypto Losses in 2025,"" revealed some startling statistics. The FBI has reported a significant increase in cryptocurrency-related fraud in the United States. Losses from these scams surged by 45% in 2025, reaching over $5.6 billion. Following a crypto market downturn in 2025, token prices began to rally last year, triggering renewed interest from criminalsAlthough $3.9 billion seems enormous, consider that the total cryptocurrency market cap climbed 45.7% in 2025 Q4, ending at $3.40 trillion.So, while losses are substantial, the market did experience overall growth.

Hacks Dominated the Losses

The primary culprit behind the $3.9 billion loss was identified as hacks. The total fundraising amount in the crypto industry reached $12.3 billion year-to-date (January to November), a 32% increase year-on-year and 19% higher than the total for 2025. However, this still falls short of the $40.6 billion raised in 2025.These malicious intrusions accounted for a staggering 95.6% of the total losses, totaling approximately $3.7 billion across 134 separate incidents.This highlights the significant vulnerabilities that exist within various blockchain projects and the urgent need for robust security protocols.

Decentralized Finance (DeFi) platforms were particularly vulnerable, becoming the primary target for hackers.This underscores the importance of rigorous security audits and continuous monitoring of DeFi protocols to identify and mitigate potential weaknesses.The report points out that most of the sum was lost by only four specific projects: Ronin Network, BNB Chain, Wormhole, and FTX.

Only a small fraction of the stolen funds, around 5.2% (approximately $204.2 million across 12 instances), was successfully recovered, further emphasizing the difficulty in retrieving assets lost due to hacks.

The Role of Fraud, Scams, and Rug Pulls

While hacks accounted for the vast majority of the losses, fraud, scams, and rug pulls also contributed significantly. 2025 Cryptocurrency Fraud Report Released. News. reported to the IC3 rose from $2.57 billion in 2025 to $3.96 billion in 2025 a 53% increase. that strangers or long-lost contacts offerThese deceptive practices made up the remaining 4.4% of the total losses, amounting to around $175 million across 34 incidents.These kinds of scams can be especially damaging to new crypto investors who may not know what to look for.

Rug pulls, where developers abandon a project after raising funds, are a particularly insidious form of fraud that can leave investors with worthless tokens. The global cryptocurrency market cap today is $3.39 Trillion, a -0.23% change in the last 24 hours and 25.86% change one year ago. As of today, the market cap of Bitcoin (BTC) is at $2.08 Trillion, representing a Bitcoin dominance of 61.51%. Meanwhile, Stablecoins' market cap is at $254 Billion and has a 7.48% share of the total crypto market cap.Ponzi schemes, phishing attacks, and fake Initial Coin Offerings (ICOs) were also prevalent, preying on unsuspecting investors seeking quick profits.

FBI's Cryptocurrency Fraud Report 2025

The FBI's Internet Crime Complaint Center (IC3) also released a detailed report on cryptocurrency fraud in 2025, providing a complementary perspective on the losses. In 2025, primary sales of Ethereum-based NFTs (ERC-721 and ERC-1155), plus the royalties paid to creators from secondary sales on OpenSea, yielded a total of $3.9 billion. That s quadruple the $1 billion less than 1% of revenues that Meta has earmarked for creators through 2025.This report, released on September 9th, 2026, revealed a concerning trend of increasing cryptocurrency-related fraud in the United States.

The IC3 received over 69,000 complaints related to cyber-enabled crime and financial fraud involving cryptocurrency, with reported losses exceeding $5.6 billion.Investment scams were identified as the leading type of fraud, accounting for a significant portion of the losses.

The FBI's report indicated a 53% increase in reported losses from investment fraud related to cryptocurrency, rising from $2.57 billion in 2024 to $3.96 billion in 2025.This rise underscores the growing sophistication of criminals exploiting the cryptocurrency market.

Key Factors Contributing to Cryptocurrency Losses

Several factors contributed to the substantial losses experienced in the cryptocurrency market in 2025.These factors include technological vulnerabilities, the increasing sophistication of scammers, and increased investor interest.Identifying these is the first step in prevention.

Technological Vulnerabilities: Flaws in smart contracts, blockchain protocols, and cryptocurrency exchanges create opportunities for hackers to exploit.
Lack of Security Awareness: Many crypto users lack the necessary knowledge and awareness to protect themselves from scams and phishing attacks.
Sophisticated Scammers: Criminals are constantly developing new and more sophisticated techniques to deceive investors and steal funds.
Regulatory Uncertainty: The lack of clear regulatory frameworks in some jurisdictions creates loopholes that scammers can exploit.
Increased Investor Interest: As the popularity of cryptocurrencies grows, so does the pool of potential victims for fraudulent schemes.

How to Protect Yourself from Cryptocurrency Scams and Hacks

While the risks associated with the cryptocurrency market are real, there are several steps individuals and organizations can take to mitigate those risks and protect their assets.

Due Diligence and Research

Thoroughly research any cryptocurrency project or platform before investing. $3.9 billion lost in the cryptocurrency market in 2025: Report. Open in AppUnderstand the underlying technology, the team behind the project, and the associated risks. According to the FBI s Internet Crime Report for 2025 released two days ago, investment fraud perpetrated on Americans referencing cryptocurrency caused $3.9 billion in losses last year, up from $2.57 billion in 2025. Those losses were the lion s share of all investment fraud perpetrated.Read whitepapers carefully and look for independent reviews and audits.

Strong Security Practices

Implement strong security practices to protect your cryptocurrency wallets and accounts.Use strong, unique passwords, enable two-factor authentication (2FA), and store your private keys offline in a secure hardware wallet. On Monday, September 9, the investigative agency published its Cryptocurrency Fraud Report for 2025, reporting a staggering $5.6 billion in losses. Sponsored The FBI emphasized that malicious actors extensively used cryptocurrency in various fraudulent schemes throughout the year, with investment scams taking the lead as the most reported andBe wary of Phishing attempts!

Identify and Avoid Crypto Scams

Be skeptical of projects that promise unrealistically high returns, require you to recruit new members, or pressure you to invest quickly.Learn to recognize common red flags associated with Ponzi schemes, phishing attacks, and rug pulls.

Here's a list of common red flags:

Unrealistic promises: If it sounds too good to be true, it probably is.
Pressure to invest quickly: Scammers often create a sense of urgency to pressure victims into making hasty decisions.
Lack of transparency: Be wary of projects that lack clear information about their team, technology, or operations.
Guaranteed returns: No investment is guaranteed to be profitable.Be skeptical of projects that promise guaranteed returns.
Unsolicited offers: Be cautious of unsolicited emails, messages, or phone calls offering investment opportunities.

Stay Informed and Updated

Stay informed about the latest cryptocurrency scams and security threats by following industry news, reading security alerts, and participating in online forums.Knowledge is your best defense against fraud.

Use Reputable Exchanges and Platforms

Choose reputable cryptocurrency exchanges and platforms that have a proven track record of security and compliance.Look for exchanges that implement robust security measures, such as cold storage of funds, multi-factor authentication, and regular security audits.

Regularly Update Software

Keep your software up to date, including your operating system, browser, and cryptocurrency wallets. 1. Total Crypto Market Cap Grew 45.7% in 2025 Q4, Ending the Quarter at $3.91T Total crypto market cap climbed 45.7% ($1.07 trillion) to end 2025 Q4 at $3.40 trillion. While the market lost momentum in Q3, it managed to find a local bottom, before rallying mid-Q4 following Donald Trump s win in the US Presidential Elections.Software updates often include security patches that address known vulnerabilities.

Be Cautious of Third-Party Applications

Exercise caution when connecting your cryptocurrency wallets to third-party applications. Immunefi, a bug bounty and security services platform for the Web3 ecosystem, published a report on Jan. 6 revealing that the crypto industry lost a total of 3.9 billion dollars in 2025. According to the report, hacks were found to be the main cause of the losses, accounting for 95.6% of the totalOnly connect your wallet to trusted applications and carefully review the permissions you grant.

Report Suspicious Activity

If you suspect that you have been targeted by a cryptocurrency scam or hack, report it to the appropriate authorities, such as the FBI's Internet Crime Complaint Center (IC3) or your local law enforcement agency.

The Impact of Crypto Losses on the Industry

The substantial losses experienced in the cryptocurrency market in 2025 had a ripple effect across the industry, impacting investor confidence, regulatory scrutiny, and the overall perception of digital assets.

Reduced Investor Confidence

The frequent reports of hacks and scams eroded investor confidence in the cryptocurrency market. The report from Immunefi revealed hacks to have been the main cause of related losses. Immunefi, a bug bounty and security services platform for the Web3 ecosystem, published a report on Jan. 6 revealing that the crypto industry lost a total of 3.9 billion dollars in 2025.Many potential investors were hesitant to enter the market due to the perceived risks, while existing investors became more cautious and risk-averse.

Increased Regulatory Scrutiny

The significant losses prompted increased regulatory scrutiny of the cryptocurrency market. Immunefi s Crypto Losses 2025 report found over $3.9 billion was lost last year. While that might seem like a whopping amount of capital to lose track of, it s down 51.2% compared to 2025Governments and regulatory agencies around the world began to examine the industry more closely, seeking to implement measures to protect investors and prevent fraud. The report from Immunefi revealed hacks to have been the main cause of related losses. Continue reading $3.9 billion lost in the Cookie Policy 44 (0) 203 8794 460 Free Membership LoginThe lack of clear regulatory frameworks allows scammers to thrive.

Negative Public Perception

The negative news surrounding cryptocurrency losses contributed to a negative public perception of digital assets. The cryptocurrency market has grown fast, attracting scammers. In 2025, they stole $14 billion, and in 2025, they lost $2.57 billion. Scammers use Ponzi schemes, phishing, and fake ICOs to trick investors. Identifying and Avoiding Crypto Scams. To protect your crypto, learn to spot scams. Ponzi schemes promise high returns but fail.Many people viewed cryptocurrencies as risky and unreliable, associating them with scams and criminal activity.

The Future of Cryptocurrency Security

Addressing the security challenges facing the cryptocurrency market is crucial for its long-term success. The Crypto Losses in 2025 Report from Immunefi has reported a total of $3.9 billion USD of value lost in 2025, with more than half of the value lost in just five major exploits. Hacks in Decentralized Finance (DeFi) were the hottest form of exploit in 2025, according to the January 6 report.Several initiatives are underway to improve security and mitigate the risks associated with digital assets.

Bug Bounty Programs

Bug bounty programs, like those offered by Immunefi, incentivize security researchers to identify and report vulnerabilities in cryptocurrency projects. These include both alleged fraud and successful and semi-successful hacking attempts. According to their analysis, the web3 ecosystem saw a total loss of $3.9 billion in 2025. The vast majority of that ($3.7 billion) was lost across 134 hacks. The remaining total was 175 million in fraud across 34 incidents, according to their research.These programs play a vital role in proactively identifying and fixing security flaws before they can be exploited by hackers.

Smart Contract Audits

Smart contract audits are essential for ensuring the security and reliability of decentralized applications. 2025. $3,773,906,837 was lost to hacks in 2025 across 134 speciﬁc incidents and $174,949,200 was lost to fraud in 2025 across 34 speciﬁc incidents. Most of that sum was lost by four speciﬁc projects: Ronin Network, BNB Chain, Wormhole, and FTX. This number represents a 51.2% decrease compared to 2025, when hackersIndependent auditors review smart contract code to identify potential vulnerabilities and recommend improvements.Thorough audits are essential for DeFi projects.

Advanced Security Technologies

Researchers and developers are constantly working on new and advanced security technologies to protect cryptocurrency assets.These technologies include multi-party computation (MPC), zero-knowledge proofs, and hardware security modules (HSMs).

Increased Security Awareness

Raising security awareness among cryptocurrency users is crucial for preventing scams and phishing attacks. According to the FBI s Internet Crime Complaint Center, or IC3, victims reported $3.9 billion in estimated losses from investment fraud related to cryptocurrency in 2025. Unfortunately, thisEducational campaigns, online resources, and community initiatives can help users learn how to protect themselves and their assets.

Regulatory Collaboration

Collaboration between regulatory agencies and the cryptocurrency industry is essential for creating a safe and secure ecosystem. The FBI on September 9 released its Cryptocurrency Fraud Report for 2025. In 2025, the FBI s Internet Crime Complaint Center received more than 69,000 complaints from the public regarding cyberClear regulatory frameworks, combined with industry best practices, can help prevent fraud and protect investors.

NFT Sales and Market Comparisons

While $3.9 billion was lost to hacks and scams, it's important to note other financial aspects of the crypto world in 2025.For example, primary sales of Ethereum-based NFTs (ERC-721 and ERC-1155), plus the royalties paid to creators from secondary sales on OpenSea, yielded a total of $3.9 billion in 2025. $3.9 billion lost in the cryptocurrency market in 2025: ReportThis comparison highlights the diverse economic activities within the crypto space.The total fundraising amount in the crypto industry reached $12.3 billion year-to-date (January to November), a 32% increase year-on-year and 19% higher than the total for 2024. Today's Cryptocurrency Prices by Market Cap The global crypto market cap is $3.25T, a 2.59 % increase over the last day. The total crypto market volume over the last 24 hours is $114.22B, which makes a 15.02 % decrease.However, this still falls short of the $40.6 billion raised in 2021.

Therefore, a comparison must be drawn to understand how to prevent losing $3.9 billion to scams.

Conclusion: Key Takeaways and the Path Forward

The $3.9 billion lost in the cryptocurrency market in 2025 serves as a stark reminder of the inherent risks associated with digital assets.While the news might be disheartening, it also provides an opportunity for growth and improvement. The crypto industry as a whole lost $3.9 billion in 2025, according to a new report from bug bounty platform Immunefi. Of those, only 5.2% were recovered, totaling around $204.2 million across 12 instances, the firm also said.By understanding the sources of these losses, implementing robust security measures, and fostering a culture of awareness, the cryptocurrency industry can mitigate the risks and create a safer environment for everyone.The vast majority of the losses in 2025 was attributable to hacks. Report this post Immunefi, a bug bounty and security services platform for the Web3 ecosystem, published a report on Jan. 6 showing that the crypto industry will lose 3.9 billion dollars in 2025.The FBI also found a sharp rise in cryptocurrency-related investment fraud. The FBI recently released its Cryptocurrency Fraud Report for 2025. In 2025, the FBI s Internet Crime Complaint Center received more than 69,000 complaints from the public regarding cyber-enabled crime and financial fraud involving the use of cryptocurrency, with over $5.6 billion in reported losses. Criminal actors exploit cryptocurrencies for all schemes, to include tech supportThis highlights the importance of doing your own research, utilizing strong security practices, and exercising extreme caution when considering new investments.

The losses in 2025, while significant, represent a decrease compared to previous years, suggesting that security measures are gradually improving. The FBI on September 9 released the Cryptocurrency Fraud Report for 2025. In 2025, the FBI s Internet Crime Complaint Center received more than 69,000 complaints from the public regarding cyberContinued collaboration between industry stakeholders, regulatory agencies, and security experts is essential for ensuring the long-term success and sustainability of the cryptocurrency market. 2025 was one of the worst years for crypto since its inception. Between the collapse of cryptocurrencies like Luna and exchanges like Celsius, FTX, and Voyager, the cryptocurrency market lost a total of $3.9 billion of value! The stats above highlights how the 2025 cryptocurrency collapse impacted the average retail investor.By prioritizing security and transparency, the industry can overcome the challenges and realize the full potential of digital assets.

Key Takeaways:

Hacks are the primary cause of cryptocurrency losses.
Fraud, scams, and rug pulls also contribute significantly to the losses.
Strong security practices, due diligence, and awareness are essential for protecting yourself from scams and hacks.
Regulatory scrutiny and collaboration are crucial for creating a safer cryptocurrency ecosystem.

Ultimately, the future of cryptocurrency security depends on a collective effort from all stakeholders.By working together, we can create a more secure and trustworthy environment for digital assets.

Call to Action: Stay vigilant, educate yourself, and prioritize security in all your cryptocurrency activities.Report any suspicious activity to the appropriate authorities and contribute to building a safer and more reliable cryptocurrency ecosystem.