The Evolution of Cryptocurrency Hacking in 2025: An In-Depth Analysis

By: crypto insight|2025/12/01 18:30:08

Key Takeaways:

Cryptocurrency hacking in 2025 has shifted dramatically towards social engineering attacks, with North Korean groups significantly involved.
Major exchanges, such as Bybit, have suffered immense losses due to these sophisticated attacks.
The responsibility of securing digital assets has increasingly fallen on individual users, emphasizing the need for awareness and better security practices.
Hardware wallets are an effective tool to reduce risks but are not a foolproof solution against evolving threats.

WEEX Crypto News, 2025-12-01 10:29:14

Introduction to the New Wave of Crypto Attacks

The world of cryptocurrency in 2025 has stood witness to both innovations and challenges. Among the latter, a notable shift in how digital assets are compromised has emerged, marking a significant evolution from the more direct attacks of previous years. Let’s delve into this transformative era of cyber threats and how individuals can arm themselves against these new dangers.

The Surge in Cryptocurrency Thefts: A 2025 Perspective

In the first nine months of 2025, cryptocurrency thefts linked to North Korean hackers amounted to over $2 billion. This year has seen the largest recorded financial crimes involving digital assets, with the Bybit exchange facing a substantial $1.4 billion loss due to a breach in February. The cumulative value of cryptocurrencies stolen by the North Korean regime has now surpassed $6 billion. This shift signals a stark change from infrastructure-targeted attacks to those exploiting human vulnerabilities.

Social Engineering: The Preferred Method of Attack

According to a report by Elliptic, social engineering has become the dominant technique in 2025 for crypto-related hacks. Unlike the brute-force cyber attacks or sophisticated software exploits witnessed in incidents such as the Ronin Network hack and The DAO attack in previous years, today’s hackers exploit the psychological traits of individuals. This method relies heavily on manipulating unwitting targets into volunteering crucial security information rather than swiping it through traditional hacking methods.

Chainalysis has reported that private key leaks accounted for the majority of crypto thefts in 2024, comprising 43.8% of cases. As cryptocurrencies develop and protocols strengthen, the onus has shifted towards targeting individuals responsible for securing their private keys. This change in strategy hints at an increased level of organization behind these attacks, moving away from isolated incidents to highly coordinated efforts.

Case Studies in Advanced Hacking: Bybit and Atomic Wallet

Perhaps the most monumental of these attacks in recent history is the Bybit hack, which continues to be the largest single crypto robbery to date. Here, the breach wasn’t in Ethereum’s network security; rather, it stemmed from incorrect human action when verifying transaction authorizations. Another significant case involves the Atomic Wallet, where malware exploited users’ poor storage of private keys on personal devices, leading to losses between $35 million and $100 million.

These incidences underscore a critical reality: regardless of how robust a protocol is, human error can often be its Achilles’ heel. Secure transaction verification and key storage practices are all too commonly overlooked or poorly managed, leaving vulnerabilities exposed.

Self-Custody: The Illusion of Security

The mantra, “Not your keys, not your coins,” remains pervasive in the crypto world. However, a prevailing issue is the cessation of care following the withdrawal of funds from exchanges. Over the past three years, concerns over another FTX-like collapse and principled reasons have prompted many users to transfer assets out of exchanges. Consequently, decentralized exchanges (DEXs) have seen their cumulative trading volumes more than double.

Despite the apparent advancement in security culture, the shift has inadvertently led to chaos and insecurity. Common points of failure include browser extensions, mnemonic phrases stored in insecure locations, and private keys left vulnerable due to poor personal security measures. The shift from institutional dependency to self-custody has highlighted a significant gap in users’ understanding and capabilities.

Role of Hardware Wallets in Enhancing Security

Cold storage solutions like hardware wallets offer one approach to mitigate certain risks. By isolating assets offline, they remove private keys from commonly used devices and reduce reliance on browser-based actions. However, they are not without their drawbacks. While these devices introduce physical security checkpoints, they remain a tool vulnerable to misuse.

Notably, phishing attacks targeting popular hardware wallet brands, such as Ledger, have surfaced. Malicious actors have developed fake browser extensions and spoofed versions of Ledger Live, lulling users into a false sense of security and prompting them to reveal their seed phrases. The key takeaway from this is that while hardware wallets can diminish the chances of unauthorized access, they cannot entirely negate the risk.

Risk Minimization Through Separation and Vigilance

Optimal use of hardware wallets involves purchasing from reputable sources and securely managing seed phrases offline. Experts advocate for risk division, employing separate wallets for daily and savings usage. Experimental funds for DeFi activities can remain accessible, while larger, long-term store of value assets are kept insulated from the internet, accessible only through multi-step authentication.

The most important line of defense lies in fundamental security habits. Avoid entering sensitive information like seed phrases on websites, and always verify addresses on the hardware wallet’s screen. Exercise caution with unsolicited transactions and links. Consistently viewing every interaction as a potential threat rather than a benign occurrence significantly enhances security.

Conclusion: Proactive Steps Towards Cybersecurity

The narrative of crypto security in 2025 tells of an intricate dance between advanced technologies and the human elements of trust and error. While cybersecurity tools have evolved, the foundation must be built on robust personal security practices. Staying ahead of potential vulnerabilities requires users to continually educate themselves and implement comprehensive security measures.

As the digital asset landscape grows more complex, new vulnerabilities may surface, calling for continual vigilance and adaptation. Each additional layer of precaution taken is a stride toward minimalizing exposure to risk and fortifying the individual’s defense against the ever-adapting techniques of cybercriminals.

FAQs

How can I protect my crypto assets from hacking?

To protect your digital assets, start by using a hardware wallet to store your private keys offline. Ensure that you never share your seed phrase with anyone, and verify addresses visually before confirming transactions. Regularly update security software on your devices and remain skeptical of unsolicited communication.

Why has there been an increase in social engineering attacks in 2025?

The rise in social engineering attacks aligns with increasing cybersecurity measures that make direct intrusions into systems more challenging. These attacks leverage human psychology, exploiting the tendency to trust rather than focusing on exploiting technological vulnerabilities.

What should I do if my wallet is compromised?

If you suspect your wallet is compromised, immediately transfer any remaining funds to a secure wallet, preferably a hardware wallet. Change passwords, and consider consulting a cybersecurity professional for further steps, including assessing the breach’s source.

How effective are hardware wallets against hacking?

Hardware wallets provide a significant security advantage by keeping private keys offline. However, they must be used correctly—purchased from trusted sources, seed phrases stored securely offline, and users must remain aware of potential phishing attacks targeting these devices.

What are some common indicators of a potential social engineering attack?

Be wary of unsolicited job offers, especially those involving ZIP files or installations; prompts asking for confidential information like private keys; messages that invoke urgency or fear; and inconsistencies in communications claiming to be from trusted organizations. Always verify sources before engaging.

Foreword: Today, the People's Bank of China's website published the "Notice of the People's Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Further Preventing and Dealing with Risks Related to Virtual Currency and Others (Yinfa [2026] No. 42)", the latest regulatory requirements from the eight departments including the central bank, which are basically consistent with the regulatory requirements of recent years. The main focus of the regulation is on speculative activities such as virtual currency trading, exchanges, ICOs, overseas platform services, and this time, regulatory oversight of RWA has been added, explicitly prohibiting RWA tokenization, stablecoins (especially those pegged to the RMB). The following is the full text:

To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, the Xinjiang Production and Construction Corps:

Recently, there have been speculative activities related to virtual currency and Real-World Assets (RWA) tokenization, disrupting the economic and financial order and jeopardizing the property security of the people. In order to further prevent and address the risks related to virtual currency and Real-World Assets tokenization, effectively safeguard national security and social stability, in accordance with the "Law of the People's Republic of China on the People's Bank of China," "Law of the People's Republic of China on Commercial Banks," "Securities Law of the People's Republic of China," "Law of the People's Republic of China on Securities Investment Funds," "Law of the People's Republic of China on Futures and Derivatives," "Cybersecurity Law of the People's Republic of China," "Regulations of the People's Republic of China on the Administration of Renminbi," "Regulations on Prevention and Disposal of Illegal Fundraising," "Regulations of the People's Republic of China on Foreign Exchange Administration," "Telecommunications Regulations of the People's Republic of China," and other provisions, after reaching consensus with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the relevant matters are notified as follows:

I. Clarify the essential attributes of virtual currency, Real-World Assets tokenization, and related business activities

(I) Virtual currency does not possess the legal status equivalent to fiat currency. Virtual currencies such as Bitcoin, Ether, Tether, etc., have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, existing in digital form, etc. They do not have legal tender status, should not and cannot be circulated and used as currency in the market.

The business activities related to virtual currency are classified as illegal financial activities. The exchange of fiat currency and virtual currency within the territory, exchange of virtual currencies, acting as a central counterparty in buying and selling virtual currencies, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of virtual currency-related financial products, etc., fall under illegal financial activities, such as suspected illegal issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, etc., are strictly prohibited across the board and resolutely banned in accordance with the law. Overseas entities and individuals are not allowed to provide virtual currency-related services to domestic entities in any form.

A stablecoin pegged to a fiat currency indirectly fulfills some functions of the fiat currency in circulation. Without the consent of relevant authorities in accordance with the law and regulations, any domestic or foreign entity or individual is not allowed to issue a RMB-pegged stablecoin overseas.

（II）Tokenization of Real-World Assets refers to the use of encryption technology and distributed ledger or similar technologies to transform ownership rights, income rights, etc., of assets into tokens (tokens) or other interests or bond certificates with token (token) characteristics, and carry out issuance and trading activities.

Engaging in the tokenization of real-world assets domestically, as well as providing related intermediary, information technology services, etc., which are suspected of illegal issuance of token vouchers, unauthorized public offering of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited; except for relevant business activities carried out with the approval of the competent authorities in accordance with the law and regulations and relying on specific financial infrastructures. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.

II. Sound Work Mechanism

(III) Inter-agency Coordination. The People's Bank of China, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of virtual currency-related illegal financial activities.

The China Securities Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.

(IV) Strengthening Local Implementation. The people's governments at the provincial level are overall responsible for the prevention and disposal of risks related to virtual currencies and the tokenization of real-world assets in their respective administrative regions. The specific leading department is the local financial regulatory department, with participation from branches and dispatched institutions of the State Council's financial regulatory department, telecommunications regulators, public security, market supervision, and other departments, in coordination with cyberspace departments, courts, and procuratorates, to improve the normalization of the work mechanism, effectively connect with the relevant work mechanisms of central departments, form a cooperative and coordinated working pattern between central and local governments, effectively prevent and properly handle risks related to virtual currencies and the tokenization of real-world assets, and maintain economic and financial order and social stability.

III. Strengthened Risk Monitoring, Prevention, and Disposal

(5) Enhanced Risk Monitoring. The People's Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, Cyberspace Administration of China, and other departments continue to improve monitoring techniques and system support, enhance cross-departmental data analysis and sharing, establish sound information sharing and cross-validation mechanisms, promptly grasp the risk situation of activities related to virtual currency and real-world asset tokenization. Local governments at all levels give full play to the role of local monitoring and early warning mechanisms. Local financial regulatory authorities, together with branches and agencies of the State Council's financial regulatory authorities, as well as departments of cyberspace and public security, ensure effective connection between online monitoring, offline investigation, and fund tracking, efficiently and accurately identify activities related to virtual currency and real-world asset tokenization, promptly share risk information, improve early warning information dissemination, verification, and rapid response mechanisms.

(6) Strengthened Oversight of Financial Institutions, Intermediaries, and Technology Service Providers. Financial institutions (including non-bank payment institutions) are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related business activities, issuing and selling financial products related to virtual currency, including virtual currency and related financial products in the scope of collateral, conducting insurance business related to virtual currency, or including virtual currency in the scope of insurance liability. Financial institutions (including non-bank payment institutions) are prohibited from providing custody, clearing, and settlement services for unauthorized real-world asset tokenization-related business and related financial products. Relevant intermediary institutions and information technology service providers are prohibited from providing intermediary, technical, or other services for unauthorized real-world asset tokenization-related businesses and related financial products.

(7) Enhanced Management of Internet Information Content and Access. Internet enterprises are prohibited from providing online business venues, commercial displays, marketing, advertising, or paid traffic diversion services for virtual currency and real-world asset tokenization-related business activities. Upon discovering clues of illegal activities, they should promptly report to relevant departments and provide technical support and assistance for related investigations and inquiries. Based on the clues transferred by the financial regulatory authorities, the cyberspace administration, telecommunications authorities, and public security departments should promptly close and deal with websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and real-world asset tokenization-related business activities in accordance with the law.

(8) Strengthened Entity Registration and Advertisement Management. Market supervision departments strengthen entity registration and management, and enterprise and individual business registrations must not contain terms such as "virtual currency," "virtual asset," "cryptocurrency," "crypto asset," "stablecoin," "real-world asset tokenization," or "RWA" in their names or business scopes. Market supervision departments, together with financial regulatory authorities, legally enhance the supervision of advertisements related to virtual currency and real-world asset tokenization, promptly investigating and handling relevant illegal advertisements.

（IX） Continued Rectification of Virtual Currency Mining Activities. The National Development and Reform Commission, together with relevant departments, strictly controls virtual currency mining activities, continuously promotes the rectification of virtual currency mining activities. The people's governments of various provinces take overall responsibility for the rectification of "mining" within their respective administrative regions. In accordance with the requirements of the National Development and Reform Commission and other departments in the "Notice on the Rectification of Virtual Currency Mining Activities" (NDRC Energy-saving Building [2021] No. 1283) and the provisions of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," a comprehensive review, investigation, and closure of existing virtual currency mining projects are conducted, new mining projects are strictly prohibited, and mining machine production enterprises are strictly prohibited from providing mining machine sales and other services within the country.

（X） Severe Crackdown on Related Illegal Financial Activities. Upon discovering clues to illegal financial activities related to virtual currency and the tokenization of real-world assets, local financial regulatory authorities, branches of the State Council's financial regulatory authorities, and other relevant departments promptly investigate, determine, and properly handle the issues in accordance with the law, and seriously hold the relevant entities and individuals legally responsible. Those suspected of crimes are transferred to the judicial authorities for processing according to the law.

（XI） Severe Crackdown on Related Illegal and Criminal Activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as judicial and procuratorial organs, in accordance with their respective responsibilities, rigorously crack down on illegal and criminal activities related to virtual currency, the tokenization of real-world assets, such as fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising, and other illegal and criminal activities carried out under the guise of virtual currency, the tokenization of real-world assets, etc.

（XII） Strengthen Industry Self-discipline. Relevant industry associations should enhance membership management and policy advocacy, based on their own responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and the tokenization of real-world assets. Member units that violate regulatory policies and industry self-discipline rules are to be disciplined in accordance with relevant self-regulatory management regulations. By leveraging various industry infrastructure, conduct risk monitoring related to virtual currency, the tokenization of real-world assets, and promptly transfer issue clues to relevant departments.

IV. Strict Supervision of Domestic Entities Engaging in Overseas Business Activities

（XIII） Without the approval of relevant departments in accordance with the law and regulations, domestic entities and foreign entities controlled by them may not issue virtual currency overseas.

（XIV） Domestic entities engaging directly or indirectly in overseas external debt-based tokenization of real-world assets, or conducting asset securitization activities abroad based on domestic ownership rights, income rights, etc. (hereinafter referred to as domestic equity), should be strictly regulated in accordance with the principles of "same business, same risk, same rules." The National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments regulate it according to their respective responsibilities. For other forms of overseas real-world asset tokenization activities based on domestic equity by domestic entities, the China Securities Regulatory Commission, together with relevant departments, supervise according to their division of responsibilities. Without the consent and filing of relevant departments, no unit or individual may engage in the above-mentioned business.

(15) Overseas subsidiaries and branches of domestic financial institutions providing Real World Asset Tokenization-related services overseas shall do so legally and prudently. They shall have professional personnel and systems in place to effectively mitigate business risks, strictly implement customer onboarding, suitability management, anti-money laundering requirements, and incorporate them into the domestic financial institutions' compliance and risk management system. Intermediaries and information technology service providers offering Real World Asset Tokenization services abroad based on domestic equity or conducting Real World Asset Tokenization business in the form of overseas debt for domestic entities directly or indirectly venturing abroad must strictly comply with relevant laws and regulations. They should establish and improve relevant compliance and internal control systems in accordance with relevant normative requirements, strengthen business and risk control, and report the business developments to the relevant regulatory authorities for approval or filing.

V. Strengthen Organizational Implementation

(16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the prevention of risks related to virtual currencies and Real World Asset Tokenization, strengthen organizational leadership, clarify work responsibilities, form a long-term effective working mechanism with centralized coordination, local implementation, and shared responsibilities, maintain high pressure, dynamically monitor risks, effectively prevent and mitigate risks in an orderly and efficient manner, legally protect the property security of the people, and make every effort to maintain economic and financial order and social stability.

(17) Widely carry out publicity and education. All departments, regions, and industry associations should make full use of various media and other communication channels to disseminate information through legal and policy interpretation, analysis of typical cases, and education on investment risks, etc. They should promote the illegality and harm of virtual currencies and Real World Asset Tokenization-related businesses and their manifestations, fully alert to potential risks and hidden dangers, and enhance public awareness and identification capabilities for risk prevention.

VI. Legal Responsibility

(18) Engaging in illegal financial activities related to virtual currencies and Real World Asset Tokenization in violation of this notice, as well as providing services for virtual currencies and Real World Asset Tokenization-related businesses, shall be punished in accordance with relevant regulations. If it constitutes a crime, criminal liability shall be pursued according to the law. For domestic entities and individuals who knowingly or should have known that overseas entities illegally provided virtual currency or Real World Asset Tokenization-related services to domestic entities and still assisted them, relevant responsibilities shall be pursued according to the law. If it constitutes a crime, criminal liability shall be pursued according to the law.

(19) If any unit or individual invests in virtual currencies, Real World Asset Tokens, and related financial products against public order and good customs, the relevant civil legal actions shall be invalid, and any resulting losses shall be borne by them. If there are suspicions of disrupting financial order and jeopardizing financial security, the relevant departments shall deal with them according to the law.

This notice shall enter into force upon the date of its issuance. The People's Bank of China and ten other departments' "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" (Yinfa [2021] No. 237) is hereby repealed.

Former Partner's Perspective on Multicoin: Kyle's Exit, But the Game He Left Behind Just Getting Started

Kyle knew his game, so he decided to focus on playing the game he was good at and interested in.

Why Bitcoin Is Falling Now: The Real Reasons Behind BTC's Crash & WEEX's Smart Profit Playbook

Bitcoin's ongoing crash explained: Discover the 5 hidden triggers behind BTC's plunge & how WEEX's Auto Earn and Trade to Earn strategies help traders profit from crypto market volatility.

Wall Street's Hottest Trades See Exodus

This time there is no single triggering factor, but rather market anxiety about asset valuation, with many already skeptical of these valuations being too high, leading to investors choosing to retreat almost simultaneously.

Vitalik Discusses Ethereum Scaling Path, Circle Announces Partnership with Polymarket, What's the Overseas Crypto Community Talking About Today?

What was the most talked-about topic among foreigners in the last 24 hours?

Kyle's review of Hyperliquid sparks controversy, Solitude Bank officially opens, what are the overseas crypto communities talking about today?

What Was Top of Mind for Foreigners in the Last 24 Hours?