Crypto Hacks Plummet: Losses Down 40% in May, PeckShield Data Reveals

The world of digital assets is constantly evolving, and with that evolution comes the persistent challenge of security. For anyone involved in cryptocurrencies, staying informed about potential risks, especially crypto hacks, is crucial. While the threat remains, recent data offers a glimmer of positive news.

PeckShield Reports: Crypto Hacks See Significant Drop

According to blockchain security firm PeckShield, the total amount lost to crypto hacks saw a substantial decrease in May 2025 compared to the previous month. This downturn is a welcome sign, suggesting that ongoing efforts to bolster crypto security may be yielding results.

PeckShield reported approximately 20 major crypto hacks during May, resulting in total losses of $244.1 million. This figure represents a 39.29% decrease from the losses recorded in April.

While $244.1 million is still a considerable sum, the reduction is notable, especially when compared to earlier in the year. For context, February 2025 alone saw crypto hack losses totaling $1.51 billion, largely dominated by a single major incident.

The Biggest Incidents: Stolen Crypto and Recovery Efforts

Despite the overall decrease, May was not without its major security breaches. The most significant incident accounted for the vast majority of the month’s total stolen crypto.

• The largest hack targeted the Cetus decentralized exchange on May 22, resulting in an estimated $223 million in user losses within 24 hours.
• Blockchain security experts from Dedaub identified the exploit as leveraging a flaw related to the most significant bits (MSB) check, allowing attackers to manipulate liquidity parameters.
• Encouragingly, PeckShield noted that Cetus and the Sui Network were able to freeze $157 million of the stolen funds, recovering roughly 71% of the amount taken in this specific incident.

Beyond the Cetus hack, several other significant events contributed to the month’s total losses:

• The second-largest exploit was a $12 million attack on the DeFi platform Cork Protocol, where attackers stole Wrapped Staked Ether (wstETH).
• Other notable incidents included a suspected DPRK-linked hack for $5.2 million, an MBU token exploit for $2.2 million, and a MapleStory Universe exploit for $1.2 million.

These incidents highlight that vulnerabilities still exist across various platforms and protocols within the crypto space.

Industry Efforts Boost Crypto Security

The reported decline in crypto hacks aligns with increasing efforts across the industry to enhance security measures and proactively counter threats. Companies and projects are investing more in audits, bug bounties, and internal security teams.

A recent example demonstrating this proactive stance involves crypto exchange BitMEX. Its security team conducted a counter-operations probe into the Lazarus Group, a North Korean cybercrime network. This investigation reportedly exposed operational security gaps within the group, including IP addresses and tracking algorithms they used. Such intelligence gathering contributes significantly to understanding and mitigating future threats.

This commitment to improving blockchain security is a collective effort involving exchanges, protocols, security firms like PeckShield, and individual users.

Understanding Blockchain Security Challenges

While progress is being made, understanding the inherent challenges in blockchain security is vital. The decentralized nature of many crypto projects, the complexity of smart contracts, and the rapid pace of innovation can sometimes introduce unforeseen vulnerabilities. Exploits often target flaws in code, protocol design, or user-level security practices.

The data from PeckShield serves as a reminder that vigilance is still necessary. While the overall trend for May is positive, the sheer scale of losses in major incidents underscores the potential risks that remain.

Summary: A Step Forward in the Fight Against Stolen Crypto

May 2025 brought encouraging news for the crypto community with a significant 40% reduction in losses from crypto hacks compared to April, as reported by PeckShield. While major incidents like the Cetus exploit still occurred, the ability to freeze a large portion of the stolen crypto demonstrates improving response capabilities. This positive trend reflects the industry’s increasing focus on enhancing crypto security and combating malicious actors. However, the persistence of attacks means that continuous investment in blockchain security and user education remains paramount to protect digital assets.