Crypto Hacks Decline by 40% in May, According to PeckShield Report

In a report released by the blockchain security firm PeckShield, the landscape of cryptocurrency security shows a notable improvement in May, with a substantial 40% decrease in major crypto hacks compared to the previous month. The total losses from hacks amounted to approximately $244.1 million, down from higher figures recorded in April.

Significant Decline in Hack Losses

PeckShield’s report states that May 2025 saw roughly 20 major hacks, signifying a significant reduction in both frequency and financial impact. The decline in losses is particularly notable given that February 2025 had already recorded substantial thefts, totaling about $1.51 billion for that month alone. The figures indicate that the cryptocurrency sector is increasingly effective in mitigating risks associated with hacking.

The largest hack reported in May, which accounted for a staggering 90% of the month’s total losses, occurred on the Cetus decentralized exchange on May 22. This incident resulted in user losses amounting to $223 million within a single day, casting a long shadow over the month’s overall statistics.

Details of the Cetus Hack

According to Dedaub, a cybersecurity firm, the hackers exploited a critical flaw in the significant bits (MSB) check. This vulnerability allowed them to manipulate liquidity parameters effectively, creating enormous positions with minimal effort. Following the breach, both Cetus and the Sui Network took prompt action, freezing $157 million of the stolen funds—representing about 71% of the total losses incurred in this hack.

Following the Cetus incident, the second-largest exploit of the month occurred on the DeFi platform Cork Protocol, with losses estimated at $12 million. This hack involved the theft of approximately 3,761 Wrapped Staked Ether (wstETH), which the attacker converted to Ether (ETH).

Other Notable Hacks

The report outlined additional hacks, including a $5.2 million incident linked to the North Korean government-sponsored Lazarus Group, a $2.2 million exploit involving the MBU token, and a $1.2 million hack related to MapleStory Universe.

These events illustrate the continuing challenges the crypto industry faces in securing its platforms against bad actors, despite the overall reduction in hacking activities.

Strengthening Security Measures

In response to the prevalent threat of hacking, the crypto industry has been intensifying its security measures. Notably, Cointelegraph reported findings from a security team at crypto exchange BitMEX, which uncovered vulnerabilities in the operational security of the Lazarus Group. This critical investigation revealed not only the IP addresses used by the group but also tracking algorithms and databases utilized in their cyber operations.

As the cybersecurity landscape evolves, the crypto sector continues to adapt, launching initiatives to bolster defenses against potential threats. Despite the notable decline in hack losses for May, the findings underscore that vigilance remains crucial in safeguarding digital assets.

Looking Ahead

With the first quarter of 2025 having already seen over $1.63 billion stolen through various exploits, it is clear that the industry must remain proactive in combatting cybercrime. While May’s statistics provide a glimmer of hope, past data indicates that the threat of hacking looms large and ongoing efforts will be necessary to protect the integrity of cryptocurrency operations.

In conclusion, while the recent decrease in hacking activity offers reassurance to investors and users alike, it also serves as a reminder of the persistent risks in the digital currency landscape.

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