The Lazarus Group has been responsible for the largest crypto-related damages this year, inflicting a $1.5 billion loss on Bybit.
Crypto Fraud and Theft Surged in Early 2025, Hitting $1.67 Billion
Recent reports show that crypto-related scams and thefts led to a loss of roughly $1.6 billion in the first quarter of 2025, with a significant portion tied to the hacking of the Bybit exchange.
According to a new report by CertiK, a total of 197 incidents were recorded in Q1 2025, resulting in an estimated $1.67 billion stolen from users. That marks a 303% increase compared to the same period last year, pushing the average loss per incident to around $9.5 million.
Efforts to recover the stolen assets—whether through legal channels or other methods—have had little success. Only about $6.5 million (or 0.4% of the total losses) have been retrieved. The irreversible nature of blockchain transactions remains a major hurdle in recovering stolen funds.
Given this, users are strongly advised to take greater precautions in securing their digital wallets and to stay alert to scams and phishing tactics commonly used by cybercriminals.
Lazarus Group Behind Massive Bybit Hack Tied to North Korea
While the total amount stolen in crypto-related incidents over the past three months is striking, it’s important to note that around $1.5 billion of that comes from a single breach—an attack on the Bybit exchange. The hack was reportedly carried out by the Lazarus Group, which is believed to have close ties to the North Korean government. A large amount of Ethereum was stolen in the attack, and reports suggest that Lazarus uses such stolen crypto to help fund North Korea’s weapons programs and other state operations.
How Is Crypto Being Stolen?
The methods behind crypto theft are becoming increasingly sophisticated. This means blockchain projects and crypto platforms need to prioritize tighter security measures. The Bybit breach highlighted major gaps in security protocols, resulting in significant losses.
Interestingly, while exchange hacks still happen, they’re not the top method of attack. Wallet compromises, leaked private keys, and phishing attacks remain the most common and effective ways hackers drain crypto funds.
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