Crypto Theft Hits Record High in 2025 Amid Kidnappings and Major Bybit Hack
Thefts of cryptocurrencies have surged to unprecedented levels in the first half of 2025, with criminals increasingly resorting to physical violence alongside cyberattacks. According to a report released Thursday by blockchain analysis firm Chainalysis, $2.17 billion worth of crypto assets have already been stolen from crypto services this year, surpassing the total stolen in all of 2024. When thefts targeting both platforms and individual wallet holders are combined, losses approach $3 billion—nearing last year’s record $3.4 billion.
Bybit Hack Fueled the Surge
A major factor driving this spike has been the cyberattack on Dubai-based crypto exchange Bybit in February. The breach, attributed to hackers linked to North Korea, resulted in the theft of approximately $1.5 billion, marking it as the largest crypto heist in history. This single event accounts for the bulk of stolen assets from services so far in 2025. Rise in Physical Attacks on Individuals
While platform hacks account for much of the loss, Chainalysis’s data highlights a disturbing increase in thefts involving individual wallets. Over 23% of the total crypto stolen has come from personal wallets, with criminals now frequently resorting to kidnapping, coercion, and physical violence to access funds.
InJanuary, David Balland, co-founder of crypto wallet company Ledger, was abducted alongside his wife from their home in central France. During the harrowing ordeal, attackers severed one of Balland’s fingers, sending video proof to his business partner as leverage for ransom demands. Both were eventually released.
Similarly, in May, the father of a crypto entrepreneur was kidnapped in broad daylight by four masked men who demanded millions in ransom and severed a finger as intimidation. He was rescued by police days later. These incidents underscore the increasing risks crypto holders face beyond the digital realm.
Drivers Behind the Rise in Crypto Theft
Eric Jardine, lead researcher on cybercrimes at Chainalysis, explained to CNBC that the rise in crypto-related thefts is driven primarily by expanding crypto adoption and appreciating asset values. “More users and services in the crypto ecosystem mean more targets, while rising cryptocurrency prices increase the USD value at risk,” Jardine said.
He also noted that as crypto trading platforms improve their security, attackers are shifting focus toward individuals’ wallets. “If services get better at security, malicious actors may prefer targeting individual wallet holders, trading off one large-scale heist for many smaller-scale victimizations,” he said.
Social Media Displays and Safety Concerns
Jardine cautioned that conspicuous displays of wealth by crypto influencers on social media can attract criminal attention. However, he emphasized the importance of not blaming victims of physical attacks, stating, “Showy displays of wealth can obviously attract bad actors compared to a more modest outward lifestyle.”
Outlook for 2025
Chainalysis anticipates that total crypto thefts could reach $4 billion by the end of 2025 if current trends continue, fueled by both large-scale cyber heists and growing numbers of physical attacks. The crypto community faces increasing challenges balancing adoption, security, and personal safety in this evolving landscape.
As cryptocurrency continues to attract more users and capital, incidents like the Bybit hack and high-profile kidnappings highlight the pressing need for enhanced protective measures for both platforms and individual holders to secure digital assets from theft and violence.