Breaking News
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Apr 03 2025
3## Full Article
Losses from cryptocurrency scams, hacks, and exploits dropped significantly in March 2025, totaling **$28.8 million**, a sharp decline from February’s **$1.5 billion** loss, which was largely due to the massive Bybit hack. The security firm CertiK reported that vulnerabilities in smart contracts and compromised wallets were the most common attack methods.
### **Major Causes of Losses**
According to CertiK’s analysis, the majority of losses stemmed from two primary factors:
- **Code vulnerabilities**: Accounted for over **$14 million** in stolen funds.
- **Wallet compromises**: Responsible for **over $8 million** in losses.
### **Most Notable Crypto Exploits in March**
The biggest incident of the month was the **$13 million** attack on **Abracadabra.money**, a decentralized lending protocol. This exploit, which occurred on **March 25**, was caused by a flaw in the liquidation process. The attacker was able to repeatedly borrow funds and liquidate positions without actually repaying their loans.
Another major attack targeted **Zoth**, a restaking protocol, where the attacker compromised the deployer wallet and stole **$8.4 million** in crypto assets.
### **Partial Recovery of Stolen Funds**
Some stolen funds were successfully retrieved, reducing overall losses. CertiK reported that a total of **$33 million** was stolen in March, but decentralized exchange aggregator **1inch** managed to recover most of the **$5 million** lost in a **March 5 exploit**. This recovery was possible after negotiating a **bug bounty agreement** with the attacker.
Despite this, not all thefts were accounted for in the final statistics. Crypto analyst **ZachXBT** highlighted an **unverified case** where a **Coinbase user reportedly lost 400 BTC**, worth approximately **$34 million**. Additionally, phishing scams pretending to be legitimate crypto exchanges may have resulted in losses exceeding **$46 million**.
### **Phishing Scams & Fraudulent Messages**
Scammers continued to evolve their methods in March.
- The **Australian Federal Police** issued warnings to **130 individuals** about SMS scams that **mimicked the sender IDs of legitimate crypto exchanges**.
- Multiple reports emerged on **March 14** regarding messages that tricked users into creating new wallets using **pre-generated recovery phrases controlled by scammers**.
### **Industry Response & Ongoing Risks**
To incentivize the return of stolen funds, **Abracadabra.money** doubled the standard bounty rate, offering a **20% reward** to the attacker. However, as of now, there are no public updates regarding whether the stolen funds have been returned.
While March’s losses were significantly lower than February’s, these incidents highlight the **persistent vulnerabilities within the crypto ecosystem**. Experts continue to emphasize the importance of **strong security measures, cautious investment practices, and user education** to prevent further losses in the future.
### **Conclusion**
The sharp drop in crypto-related scam losses in March is a positive sign, but threats remain. **Hackers are constantly finding new ways to exploit vulnerabilities, steal funds, and trick users**. Investors and traders should remain vigilant, adopt **enhanced security measures**, and stay informed about potential risks to safeguard their assets.
