USDS (usds) 
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Crypto Hacks Lead to $244.1 Million in Losses During May 2025
In May 2025, the cryptocurrency market experienced losses amounting to $244.1 million due to various hacking incidents. According to blockchain security firm PeckShield, this figure represents a 39.29% decrease compared to April’s losses. Approximately 20 major security breaches were reported, with recovery efforts successfully freezing a portion of the stolen funds.
Sui Validators and Cetus Protocol Recover $157 Million
One of the most significant incidents of the month involved a collaborative effort between Sui validators and the Cetus Protocol team. Following a massive exploit that resulted in a $220 million theft, network participants managed to recover $157 million of the stolen funds. This marks an impressive 71% recovery rate, showcasing the importance of coordinated responses in mitigating crypto theft.
“In May 2025, ~20 major crypto hacks were recorded, resulting in total losses of $244.1M—a 39.29% decrease from April. Notably, Cetus Protocol & Sui have frozen a combined $157M of stolen funds (representing 71% recovery from the $220M theft).”
The Cetus Protocol Exploit: A Closer Look
The Cetus Protocol incident accounted for the majority of losses in May 2025. Blockchain security experts from Dedaub revealed that attackers exploited a vulnerability in the protocol’s most significant bits check mechanism. This flaw allowed hackers to manipulate liquidity parameters and create disproportionately large positions with minimal effort.
While the attackers initially stole $220 million from the protocol, roughly $63 million remains in the exploiter’s wallet. The remaining funds were successfully frozen through validator coordination, significantly reducing the total impact of the attack.
Other Major Hacks in May 2025
In addition to the Cetus Protocol breach, several other notable incidents contributed to the month’s losses:
- Cork Protocol: Suffered a $12 million loss.
- North Korean-Affiliated Attack: Caused losses of $5.2 million.
- MBU Token Exploit: Resulted in a $2.2 million theft.
- MapleStory Universe Breach: Experienced a $1.2 million loss.
These incidents highlight the ongoing challenges in securing decentralized protocols and the importance of proactive security measures.
Year-to-Date Trends in Crypto Security
Despite the substantial losses in May, the figures represent a marked improvement compared to earlier months in 2025. In the first quarter of the year alone, over $1.63 billion worth of cryptocurrencies were stolen, with nearly 92% of these losses attributed to the Bybit vulnerability.
January saw $87 million in stolen assets, while February recorded a staggering $1.53 billion in losses due to the Bybit hack, one of the largest thefts in cryptocurrency history. These figures underscore the evolving threats in the crypto space and the need for enhanced security measures.
Improving Security in the Crypto Ecosystem
The cryptocurrency industry continues to face persistent security challenges, but the collaborative actions seen in the Cetus Protocol recovery efforts offer a glimmer of hope. Industry stakeholders must prioritize robust security practices, regular audits, and swift responses to vulnerabilities to protect user funds and maintain trust in decentralized finance ecosystems.
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