$2.1 Billion Lost to Crypto Hacks in H1 2025 as Security Lags

* Record $2.1 billion in crypto stolen in first half of 2025. * CEXs and DeFi platforms pressured to adopt urgent security reforms. On July 1, 2025, Cointelegraph reported that hackers stole a record $2.1 billion in crypto during the first six months of the year. The largest breach, a $1.4 billion hack targeting Bybit, underscores severe vulnerabilities in both centralized exchange (CEX) and decentralized finance (DeFi) platforms. In response, experts are urgently calling for systemic reforms to address these escalating threats. Orest Gavryliak, chief legal officer at 1inch Labs, told Cointelegraph that the crypto space must prioritize enhanced security. He noted a major vulnerability in transaction signing processes, which often rely on basic interface summaries. To fix this, Gavryliak recommends several advanced solutions, including manually decoding call data and using “intelligent co-signers” that can detect and block suspicious activity. He also suggests simulating transactions before signing and using real-time threat intelligence to detect high-risk activity. Another noteworthy proposal is to transition to multi-party computation (MPC) technology. MPC technology splits private keys into fragments that cannot be reassembled, providing robust protection against unauthorized access and presenting a compelling alternative to traditional smart-contract-based security. The DeFi sector faces equally urgent challenges, as its protocols often struggle to intercept stolen funds because bad actors can swiftly disperse assets across multiple wallets. To address this, Gavryliak advocates for layered defenses. He recommends that platforms implement real-time transaction monitoring, wallet screening, and risk scoring for suspicious behavior. Using advanced risk management tools, platforms can detect anomalies and respond decisively, for instance, by freezing flagged wallets or identifying problematic IP addresses. Industry-wide collaboration is another essential pillar of security. Gavryliak stresses that the crypto ecosystem must treat cybersecurity as a collective responsibility, and cooperation among platforms is pivotal for countering increasingly sophisticated cyber threats. Finally, Gavryliak suggests self-regulation is the most sustainable solution for security gaps. He warns that if the industry fails to act, it could invite stringent external regulations that stifle innovation. He proposes that platforms embed anti-money laundering (AML) protocols, fraud detection, and transparent risk attribution directly into their systems. This would create “protocol-level guardrails” that strengthen the crypto ecosystem’s resilience while preserving its decentralized ethos. According to CoinMarketCap, as of 19:09 UTC on July 1, Ethereum (ETH) was trading at $2,413.14, while its 24-hour trading volume had dropped by 3.245%.