What do you talk about about the 2025 surge in cryptocurrency exchange hacking?

BYBIT was subjected to a major security breaches on February 21, 2025, with approximately $1.5 billion in digital assets being stolen. The incident is the biggest crypto robber in history, shaking investors’ trust and highlighting serious vulnerabilities even on the most reputable trading platforms. The attacker exploited the flaw within Bibit’s cold wallet system. It is designed to be safe from unauthorized access offline.

According to Bybit CEO Ben Zhou, the majority of the stolen assets were ether tokens. Zhou confirmed that the exchange is actively working with blockchain analytics companies and law enforcement agencies to track stolen funds. Despite these efforts, the magnitude of the violations raises questions about the effectiveness of existing security measures within the crypto industry.

This record-breaking robbery has stepped up scrutiny of cold wallet storage systems. This is generally considered to be the safest way to store digital assets. Analysts suggest that attackers demonstrate a sophisticated understanding of BYBIT’s internal security architecture, potentially indicating insider engagement or advanced cyber-epion operations.

Phemex Hack: $85 million on the move

A few weeks before the Buybit violation, Singapore-based cryptocurrency exchange Femex experienced a $85 million theft in January 2025. The perpetrator moved 2,080 ETH (worth approximately $6 million) to 14 newly created addresses. They then routed some of the funds through Tornado Cash, an infamous crypto mixer known for obfuscating transaction history.

This complex series of transactions introduces the attacker’s advanced on-chain experience and strategic operations to avoid tracking. In addition to using Tornado Cash, hackers have leveraged other protocols such as WinterMute, DLN Trade, and Thorchain to exchange and anonymize stolen assets. A small portion of the funds are shown to go through management platforms like OKX and Coinex, showing attempts to cash out through centralized exchanges.

In response to the hack, Phemex resumed its transactions, but urged users to update their deposit addresses to enhance security. The exchange has also launched a comprehensive security review and implemented a new protocol to protect user assets. This violation illustrates the ongoing risks facing centralized crypto exchanges, as well as the risks of having a robust security infrastructure.

Orange Finance Exploit: Lost nearly $787,000

The Crypto Heists wave followed in early 2025, with Orange Finance, a liquidity management protocol on the Arbitrum network, losing around $787,000 in digital assets. In this case, the attacker gained control of the protocol’s administrator address, upgraded the smart contract, and allowed the Siphon fund to be upgraded to the wallet.

This exploit uncovers a critical vulnerability in the Decentralized Financial (DEFI) platform, particularly with regard to management key management and contract upgrade mechanisms. Orange Finance has promptly advised users to revoke all contract approvals to prevent additional losses. This incident highlights the need for a safer smart contract architecture and better practices to manage privileged access in Defi applications.

Jupiter Exchange Social Media Violation

On February 6, 2025, Jupiter, a decentralized exchange aggregator for the Solana blockchain, experienced a security breach when his official X (formerly Twitter) account was compromised. The attackers used their accounts to promote fraud tokens, mislead users, and caused market disruption.

The team quickly regained control, but the incident highlights a growing trend of targeting social media accounts and adjusting phishing attacks within the crypto space. Jupiter has reassured users that their funds and customer data have not been affected. However, this violation raises concerns about the security of official communication channels and the potential social engineering attacks.

Involvement in the Lazarus Group’s major code robbery

Some of the major hacks in 2025, including the Bibit violation, are linked to the infamous North Korean hacking group Lazarus. The Lazarus Group, known for its sophisticated cyberspy campaign, has previously targeted financial institutions and cryptocurrency exchanges to fund North Korean regimes.

Blockchain forensic companies are tracking multiple transaction patterns that match Lazarus’ methods, including the use of cryptographic mixers like Tornado Cash to anonymize stolen funds. Security researchers speculate that Lazarus’ involvement underscores the increasing geopolitical implications of crypto-related cyberattacks.

The surge in cryptocurrency exchange hacks in 2025 reveals a troubling trend that escalates cyber threats. The Buybit Hack alone reached $1.5 billion, shattering previous records and revealing serious vulnerabilities in cold wallet storage systems. Meanwhile, PHEMEX and Orange Finance Icidents highlight the continuing risks faced by both centralized and decentralized platforms.

The increasing use of crypto mixers, cross-chain bridges, and Defi protocols to wash stolen funds by cybercriminals indicates the increasing complexity of these attacks. Furthermore, as seen in the Jupiter exchange, the increase in infringement of social media accounts points to an evolving threat landscape where phishing and social engineering tactics become more common.

Industry-wide impact and security enhancement

The unprecedented scale of these hacks has prompted a comprehensive reassessment of security protocols across the cryptocurrency industry. Exchanges and platforms are increasingly migrating funds to cold storage, conducting extensive security audits and implementing multi-signature wallets to protect user assets.

Large blockchain analytics companies such as Global Ledger play a key role in tracking stolen funds and identifying malicious actors. However, the decentralized nature of blockchain technology poses a major challenge for asset recovery and law enforcement actions.

Furthermore, the involvement of state-sponsored hacking groups like Lazarus highlights the geopolitical implications of cryptocurrency breaches. This trend drives regulators to strengthen compliance requirements, including customer knowledge (KYC) and Money Laundering Anti-Money Laundering (AML) standards.