The blockchain landscape in the first half of 2025 has been defined by rapid innovation, escalating cyber threats, and accelerating global regulation. As the industry matures, security and compliance have emerged as twin pillars shaping its future. This report synthesizes key trends in blockchain security incidents, evolving fraud tactics, anti-money laundering (AML) developments, and regulatory shifts—offering actionable insights for developers, platform operators, and compliance professionals.
Blockchain Security Landscape: Key Trends and Threats
The first half of 2025 saw a notable shift in the nature of blockchain attacks. While the total number of incidents declined compared to 2024, the financial impact intensified—highlighting a trend toward fewer but more sophisticated and damaging breaches.
According to SlowMist’s blockchain incident database, 121 security events were recorded in the first six months of 2025, resulting in $2.37 billion in losses—a 65.94% year-over-year increase despite a drop in event volume. This surge underscores the growing capability of threat actors to exploit high-value targets with precision.
Top Attack Vectors by Ecosystem and Project Type
Ethereum remained the most targeted network, with approximately $38.59 million in losses. **Solana** followed with $5.8 million, and Binance Smart Chain (BSC) with $5.49 million.
In terms of project categories:
- DeFi platforms bore the brunt of attacks, accounting for 76% of all incidents (92 events) and $470 million in losses—down 28.67% from H1 2024.
- Exchanges and centralized platforms, while less frequently attacked (11 events), suffered disproportionately high losses—**$1.88 billion**, largely due to a single $1.46 billion breach at a major exchange.
Two attacks exceeded $100 million in losses, and the top ten incidents collectively accounted for **$2.018 billion—nearly 85% of total losses. The primary causes? Compromised accounts (42 incidents) and smart contract vulnerabilities (35 incidents)**.
Emerging Fraud Tactics in 2025
Beyond traditional exploits, cybercriminals are increasingly leveraging social engineering and AI-powered tools to deceive users. These methods exploit human psychology rather than technical flaws—making them harder to detect and prevent.
1. EIP-7702 Delegation Phishing
The introduction of EIP-7702 enabled enhanced account abstraction features, allowing EOA wallets to delegate permissions to smart contracts for batch transactions and gas sponsorship. However, malicious actors are exploiting this functionality by tricking users into authorizing rogue contracts. Even legitimate tools can be weaponized if users interact with phishing sites that abuse delegation capabilities.
2. Deepfake Social Engineering Scams
Generative AI has lowered the barrier for creating hyper-realistic deepfake videos and audio. Fraudsters now impersonate project founders, exchange executives, or crypto influencers to promote fake token sales or issue false security alerts. In some cases, deepfakes have been used to bypass KYC verification by mimicking users’ biometric data—posing a serious threat to identity systems.
3. Telegram “Safeguard” Scams
A widespread scam on Telegram involves fake “wallet safeguard” bots or posts claiming to protect users during airdrops or upgrades. Victims are prompted to paste malicious JavaScript code into their browser console, which immediately drains their wallet. These scams often mimic official communication styles and use social proof (likes, reposts) to appear legitimate.
4. Malicious Browser Extensions
Fake Web3 security tools disguised as browser extensions continue to plague users. Once installed, these extensions can monitor keystrokes, steal session cookies, or auto-approve transactions. Some even update silently via compromised repositories, making detection difficult.
5. LinkedIn Recruitment Phishing
Targeting developers and engineers, attackers pose as HR recruiters on LinkedIn, offering high-paying remote roles. The scam often includes a “technical test” requiring the victim to install a malicious development tool or access a compromised repository—leading to credential theft or device takeover.
6. AI-Powered LLM Abuse
Unrestricted large language models (LLMs), modified to bypass ethical safeguards, are being used to generate phishing content, malicious code, and scam scripts. These tools enable even non-technical individuals to launch convincing fraud campaigns at scale—marking a dangerous democratization of cybercrime.
7. Malicious npm Packages with Backdoors
Developers are being targeted through poisoned open-source packages like sw-cur, aiide-cur, and sw-cur1. Distributed via short-video platforms offering “cheap AI API access,” these packages infiltrate development environments, install backdoors, and turn devices into remote-controlled bots—often without detection.
Anti-Money Laundering and Regulatory Developments
As blockchain adoption grows, so does regulatory scrutiny. The first half of 2025 marked a turning point in global AML enforcement, with increased coordination between governments, stablecoin issuers, and blockchain intelligence firms.
Global Regulatory Trends
Regulators in the U.S., EU, and Hong Kong introduced stricter licensing requirements for crypto platforms and clearer frameworks for stablecoin issuance. Privacy coins and peer-to-peer trading platforms faced new restrictions, reflecting a broader push toward transparency.
Fund Freezing and Recovery Efforts
- Tether froze assets in 209 Ethereum addresses holding USDT.
- Circle blocked 44 addresses from accessing USDC.
- In 9 major hack incidents, approximately $270 million was recovered or frozen—about 11.38% of total losses—thanks to improved tracing tools and cross-organizational collaboration.
SlowMist’s MistTrack platform played a critical role in these efforts. In one case—the KiloEX hack—the team assisted in tracing $8.44 million in stolen funds and negotiating with the attacker. Within 3.5 days, full recovery was achieved under a 10% white-hat bounty agreement.
Key AML Tools and Threat Actors
Tornado Cash Activity
Despite sanctions, Tornado Cash remained active:
- 254,094 ETH ($605 million) deposited
- 248,922 ETH ($585 million) withdrawn
- Peak activity observed in May and June
eXch Mixer Shutdown
The ETH-based mixer eXch saw a spike in usage in early March (peaking at $1.94 million in deposits) but was taken offline on April 30 following law enforcement action.
Notable Threat Groups
- Lazarus Group: North Korean hackers continued targeting exchanges and DeFi protocols, using complex laundering chains involving cross-chain bridges and mixers.
- Drainers: Automated wallet drainers caused $39.7 million in losses across 43,628 addresses—often via phishing links or malicious dApp interactions.
- HuionePay: A suspected underground payment network facilitating illegal fund flows via TRON-based USDT transfers. Analysis revealed over $550 million in suspicious transactions between January 2024 and June 2025.
Frequently Asked Questions (FAQ)
Q: Why did total losses increase even though attack numbers dropped?
A: Attackers are focusing on high-value targets like centralized exchanges and large DeFi protocols. A single successful breach can result in hundreds of millions lost—making each incident more impactful.
Q: How can users protect themselves from EIP-7702 phishing?
A: Always verify contract addresses before delegating permissions. Use trusted wallets with built-in anti-phishing features and avoid interacting with unsolicited links or pop-ups.
Q: Are stablecoins really helping fight money laundering?
A: Yes. As regulated entities, issuers like Tether and Circle can freeze addresses linked to illicit activity—making stablecoins a double-edged sword: useful for criminals but also traceable and controllable.
Q: Can AI be used for good in blockchain security?
A: Absolutely. AI powers real-time anomaly detection, behavior analysis, and threat prediction systems that help platforms stop attacks before they succeed.
Q: What’s the most effective way to prevent deepfake scams?
A: Multi-factor verification for high-stakes announcements. Projects should use official channels with cryptographic signatures and warn users about potential impersonations.
Q: Is open-source software still safe for developers?
A: With caution. Always audit dependencies, use package managers with integrity checks, and avoid installing tools from untrusted sources—even if they promise cost savings.
Conclusion: Toward a Safer, More Compliant Future
The first half of 2025 reflects an industry at an inflection point. While threats are becoming more advanced—fueled by AI and organized crime—the defenses are catching up. Enhanced chain analysis tools, global regulatory alignment, and proactive threat intelligence sharing are making it harder for attackers to cash out.
The message is clear: compliance is no longer optional, and security must be proactive, not reactive. Platforms that invest in real-time monitoring, user education, and cross-industry collaboration will be best positioned to thrive in this new era.