Research suggests April 2025 saw over $364 million lost to crypto exploits, hacks, and scams, per CertiK.
Net losses were around $345 million, with $18.2 million recovered, mainly by whitehat hackers.
Major incidents like KiloEx ($7.5M), Loopscale ($5.8M), zkSync ($5M), and a $330M phishing attack.
The crypto industry faces ongoing security challenges, highlighting the need for better measures and user education.
April 2025 was a tough month for cryptocurrency security, with significant losses reported by blockchain security firm CertiK. Research suggests the industry lost over $364 million to various exploits, hacks, and scams, marking a sharp increase from March’s $29 million, a rise of over 1,100%.
Net losses appear to have totaled just over $345 million, with approximately $18.2 million recovered, largely thanks to whitehat hackers who returned funds from incidents involving KiloEx, Loopscale, and zkSync.
Breakdown of Losses and Recoveries
Let’s break down the numbers to understand the scale. CertiK’s data indicates total losses of $364 million for April, but after accounting for recoveries, the net loss was $345 million. The $18.2 million recovered is significant, representing about 5% of the total losses, and was largely facilitated by whitehat hackers. These ethical hackers, often working in collaboration with affected projects, returned funds from several high-profile incidents, including KiloEx, Loopscale, and zkSync.
For context, the recovery rate is lower compared to some previous months. For instance, in 2023, CertiK reported a 12% recovery rate for the year, with $219 million returned across 36 events. In April 2025, the recovery efforts were crucial, especially given the scale of the attacks, but they also underscore the challenges in fully securing the ecosystem.
Major Incidents
KiloEx Exploit
KiloEx, a decentralized exchange, lost $7.5 million due to a price oracle manipulation attack. The attackers exploited a vulnerability in the KiloPriceFeed contract, allowing them to manipulate token prices and drain funds.
However, through swift action and collaboration with security firms like SlowMist and PeckShield, KiloEx recovered all stolen funds by offering a 10% bounty (about $750,000) to the whitehat hacker who returned the money. This incident, detailed in a report by Halborn, highlights the critical need for secure oracle mechanisms in DeFi, as oracles provide essential price data for trading pairs.
Loopscale Hack
Loopscale, another DeFi platform, faced a $5.8 million exploit, with attackers taking advantage of a smart contract vulnerability.
The project negotiated with the hacker, who agreed to return the funds in exchange for a 10% bounty, a strategy becoming increasingly common in the industry. This approach, while effective in minimizing losses, raises questions about incentivizing ethical behavior versus encouraging attacks for potential bounties.
zkSync Airdrop Drain
zkSync, an Ethereum scaling solution, saw $5 million worth of ZK tokens drained from an airdrop contract. While the exact details are still emerging, this incident points to the risks associated with token distributions, especially in high-profile projects. Recovery efforts for this breach were not detailed in the reports, adding to the uncertainty.
The Devastating Phishing Attack
The most significant loss came on April 30, 2025, when a phishing attack stole 3,520 BTC (over $330 million) from an elderly U.S. citizen. This incident, reported by Decrypt, involved sophisticated social engineering tactics, with the attacker tricking the victim into revealing sensitive wallet information. On-chain investigator ZachXBT confirmed the victim was “an elderly individual in the U.S.” who had held the crypto since 2017, making this one of the fifth-largest crypto hacks ever. The funds were quickly laundered through at least six instant exchanges and swapped for Monero, causing XMR’s price to surge by 50%.
Recommendations for Improving Crypto Security
Given these challenges, what can be done to protect digital assets? Here are some practical steps for users and projects:
Enhanced Security Audits: Regular and thorough audits of smart contracts can identify vulnerabilities before they’re exploited. Firms like CertiK specialize in this, and projects should prioritize security from the outset. CertiK’s Skynet tool provides real-time monitoring for many projects, enhancing security awareness.
User Education: Many attacks, like phishing, rely on human error. Educating the community about best practices—such as never sharing private keys, double-checking URLs, and being cautious with unsolicited messages—is vital. The elderly victim’s loss in the phishing attack is a stark reminder of this need.
Multi-Factor Authentication (MFA): Implementing MFA for wallet access adds an extra layer of security, making unauthorized access harder. This simple step can prevent many breaches.
Hardware Wallets: For significant holdings, hardware wallets like Ledger or Trezor keep private keys offline, reducing the risk of theft. This is especially important for long-term holders, like the victim in the phishing attack.
Decentralized Identity Solutions: Exploring decentralized identity solutions can verify users without compromising privacy, reducing identity theft risks. This could help mitigate social engineering attacks.
Community Vigilance: Encouraging the community to report suspicious activities and share knowledge about new threats can help mitigate risks. On-chain sleuths like ZachXBT played a crucial role in tracking the phishing attack’s aftermath.
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