$4 Billion wiped by Crypto Scams and Hacks in 2025

Crypto investors have lost money many times for different reasons, but these losses are on the increase. A recent report by blockchain security company PeckShield, shows a marked increase from the previous year with over $4 billion lost to crypto hacks and scams in 2025.

In the report shared on X, PeckShield said 2025 was a “record-breaking year” for thefts related to crypto with most of them tied to system failures and social engineering, representing a major shift from former years. There was a 34.2% increase in the total stolen from $3.01B in 2024 to $4.04 billion in 2025. 

Crypto Thefts Getting More Sophisticated

The crypto industry is evolving rather fast, but so are strategies employed by bad actors. As highlighted by the report, the shift toward social engineering is a shift in strategy, employing more “diplomatic” ways to steal from crypto investors rather than invasive methods like hacks which were prevalent in past years.

This strategy was revealed in several crypto scams last year ranging from thieves posing as Coinbase customer care agents to phishing scams targeting Metamask users. Bad actors used tactics such as psychology and manipulation that lure victims into revealing sensitive information that the attacker can use to steal from them.

According to PeckShield, only about $334.9 million was frozen or recovered in 2025 compared to about $448.5 million in 2024. The reduction in recovery or freezing may also have to do with the social engineering strategies which make it less likely to trace the funds such as in cases where the asset holder voluntarily gave away the asset. 

An example is seen in Pi token holders, many of which gave away their tokens to attackers exploiting a legitimate feature in the wallet to request for legitimate crypto payments. With such sophistication, it is only natural that more victims will fall for more scams, which may get worse in 2026. 

Governments Take Action Against Scams

Due to the proliferation of scams, the U.S. government has taken some steps to tackle the menace rather than blame the entire crypto industry as was the case with the previous administration.

Last year, the government deployed a special task force targeting Chinese crypto scam groups specifically, which mostly employ social engineering to steal funds. The special unit was saddled with tracing and recovering funds stolen from Americans by these scam groups.

More Must-Reads:

• Staying Safe: Scams Come From Simple Interactions
• Whale Loses Massive USDT Stash in Archaic Scam Trick
• Crypto Regulation in 2025: Enforcement That Nobody Escapes