In March 2025, losses from fraud, exploits, and hacking in the cryptocurrency sector fell by a record 98% to $ 28.8 million. This is a sharp decline compared to February’s $ 1.5 billion, the bulk of which was an attack on the Bybit exchange. The decline in criminal activity indicates either an increase in the level of security of projects or a decrease in the number of vulnerabilities that can be exploited by hackers.
The largest incident in March was the $ 13 million hack of the decentralized credit protocol Abracadabra.money. The attack became possible due to flaws in the liquidation logic that allowed exploiting the bug and taking endless loans without repayment. The Zoth project wallet was also hacked, resulting in the loss of more than $ 8.4 million. Some of the funds, including $ 5 million, were recovered thanks to a bounty offered through the 1inch platform.
In addition, the community learned about another loss — 400 bitcoins BTC $83,681.43 Bitcoin -1.47% Market capitalization $1.66 trillion VOL. 24 hours $3.71 billion worth approximately $ 34 million, which belonged to an unknown Coinbase user. Experts estimate that phishing attacks and fake crypto exchanges could have caused additional losses of more than $ 46 million, although not all cases have been officially confirmed.
The decline in fraudulent activity comes amid changes in the approach to regulating the industry in the United States. Donald Trump’s new administration has declared its intention to introduce a rational and consistent regulatory framework. SEC chairman nominee Paul Atkins has already promised to work closely with Congress to develop rules that will provide a clear framework for digital assets.
The initiative for transparent regulation could be an important factor in further reducing financial losses in the industry. Although the risks in the crypto sector remain high, March 2025 was an encouraging signal for investors and users of digital assets.