Cyvers found that pig slaughterhouses posed the most organized and persistent threat, while access control attacks caused the most security incidents.
Recent findings from blockchain security experts have shown that fraudulent activities in the crypto space are developing on an industrial scale. This means that bad actors, hackers and fraudsters are increasingly conducting sophisticated social engineering operations to empty victims’ wallets.
A 2025 Web3 Security and Fraud Report from blockchain security company Cyvers revealed a sharp increase in both crypto fraud and on-chain security incidents last year. The sector recorded 108 incidents related to fraud or security threats.
The state of crypto fraud in 2025
According to Cyvers, approximately $16 billion in crypto assets were linked to fraudulent activity by 2025. This activity included at least 140 crypto exchanges and trading platforms and reached unprecedented scale across wallets, payment providers and bank rails. All major exchanges have had a significant portion of their customers scammed at least once.
Cyvers’ security systems have detected more than 4.2 million fraudulent transactions across 780,000 addresses, across approximately 19,000 active fraud networks. These fraudulent flows were heavily concentrated in assets such as Tether (USDT), Ether (ETH), and USD Coin (USDC).
The blockchain security platform found that authorized fraud, particularly pig slaughter practices, was the most organized and persistent threat. Bad actors in these networks used long-term social engineering tactics and fake investment platforms to trick victims into emptying their wallets.
Threats within the chain evolve
While crypto fraud was the biggest cause of losses last year, security incidents also contributed significantly. The crypto industry lost $2.5 billion to hacks in 2025, compared to $2.36 billion in 2024 and $1.69 billion in 2023.
The majority of the financial damage (over $2.2 billion in losses) recorded from security incidents came from large-scale access control attacks – compromised keys, permissions and human error. About $292 million was lost due to vulnerabilities in smart contracts and code.
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It is worth noting that the largest crypto theft in history occurred last year: the $1.5 billion incident on the crypto exchange Bybit. Cyvers said the attack, which was made possible by a supply chain compromise and legitimate signatures, did not initially appear to be a hack. Market experts predict that this could be the future of attacks: in-chain threats that look normal at first glance.
Meanwhile, Ethereum was the main target, accounting for 70% of all funds lost in 33 major incidents. Other networks, such as BNB Chain, Bitcoin and Sui, also witnessed separate high-impact events.
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