This month we will examine the rapidly evolving intersection of cryptocurrency and cybersecurity. While “crypto assets” are moving toward mainstream financial adoption and usage, cybersecurity remains one of the most significant—and unresolved—barriers to broader trust and stability.
A December 2025 report from Chainanalysis underscores the intricacies and nuances of the problem. In 2025 alone, the cryptocurrency industry weathered over $3.4 billion in theft, with the February compromise of Bybit accounting for $1.5 billion of that staggering amount. Another growing concern related to this global rise of crypto is the role of nation-state actors operating with malicious intentions. North Korea was the dominant threat actor in 2025. According to Chainanalysis, “In 2025, North Korean hackers stole at least $2.02 billion in cryptocurrency ($681 million more than 2024), representing a 51% increase year-over-year. This marks a record for DPRK crypto theft in terms of value stolen, with DPRK attacks also accounting for a record 76% of all service compromises. Overall, 2025’s numbers bring the lower-bound cumulative estimate for cryptocurrency funds stolen by the DPRK to $6.75 billion.”
North Korean attackers, like most malicious actors in the cyber world, continue to elevate and sharpen their tactics. Attackers infiltrate crypto firms as employees and even impersonate recruiters from prominent AI firms. Fake hiring processes generate false “technical screens” designed to collect and steal credentials, source code, and VPN or Single Sign-on (SSO) access to current employers. This means that a hiring process can turn into an appealing attack surface for those who seek to steal data and do financial and personal harm.
Recent reporting highlights that cyber risk in the crypto ecosystem is not just tied to digital assets. An August 2025 analysis from Kroll notes a 40% increase in phishing attacks targeting cryptocurrency users, which often takes place through fake or invalid exchange sites. The Kroll report identified a few growing areas of concern. First, the issue of crypto-related kidnappings targeting high profile investors. Second, a failure to comply with regulatory guidelines means that organizations may face legal penalties and sanctions while losing reputational status. A lack of financial intelligence has made possible terrorist and organized crime activity, which has led to overall market instability. For example, Bitcoin dropped 20% after the Bybit breach.
While financial regulators, institutions and investors are increasingly interested in cryptocurrency, public confidence and understanding remains low and in some cases, nonexistent. A Pew Research Center survey from 2024 indicated that 63% of Americans “have little to no confidence that current ways to invest in, trade or use cryptocurrencies are reliable and safe,” and only 17% report using crypto for transactions, a figure unchanged since 2021.
A quick search of cryptocurrency reveals an uptick in YouTube instructional content related to cryptocurrency, illustrating the “common” person’s tenuous grasp of what it is, what it does, and what potential risks it might hold.
According to a Forbes article from March 2025, regulatory momentum to address these rising concerns is building at variable paces on a global level and scale. The European Union’s MiCA framework provides a baseline for crypto oversight, while in the United States several bills—including the STABLE Act—seek to implement audit requirements, compliance standards not unlike those used in traditional finance, as well as real-time disclosure obligations. These efforts are intended to close long-standing gaps, but progress remains wildly uneven.
Several recent incidents illustrate the high stakes of crime in the world of cryptocurrency. A May 2025 article from the BBC reported that Coinbase disclosed a cyberattack that will cost the company an estimated $400 million or more after hackers bribed contractors and employees to access and harvest customer data. Although less than 1% of customer information was compromised, attackers were able to impersonate the firm and steal user funds. The cyber-attack occurred just days before Coinbase’s landmark inclusion in the benchmark S&P 500 index. It also reflects how, as it grows, the cryptocurrency industry will become an increasingly valuable target for cyber criminals. “Security remains a challenge for the crypto industry despite its growing mainstream acceptance,” said Nick Jones, founder of crypto firm Zumo, who was quoted in the article. Jones went on to say, “as our nascent industry grows rapidly, it draws the eye of bad actors, who are becoming increasingly sophisticated in the scope of their attacks.” According to the article, staff members who shared customer information with the hackers have been fired.
Beyond individual firms, the broader implications of a growing knowledge and use of cryptocurrency are becoming increasing intricate and vast. As the use of crypto becomes more common within banking systems, retirement accounts, and payment infrastructure, those who never directly use cryptocurrency—or even know what it is or how it works—may be exposed to its substantial and sometimes catastrophic risks. An analysis from Brookings shows that inefficient enforcement, political entanglements within the crypto industry itself, and inconsistent regulatory standards echo the same issues that preceded the 2008 financial crisis. As the risk escalates, ordinary Americans through both public and personal retirement systems, could bear the brunt of financial and personal costs.
Illustrating the ways in which cryptocurrency will continue to impact the average consumer, even if they don’t understand how crypto works, is the rise in fraudulent behavior. 2024 saw a massive uptick in crypto ATM scams. According to the FBI, some 11,000 complaints were reported with nearly $250 million in losses. Many of those losses impacted older adults as “individuals over age 60 filed over 2,600 complaints and saw losses exceeding $100 million.” According to the U.S. Senate Homeland Security Committee, ransomware attacks are on the rise in hospitals, schools and government due to their usage of cryptocurrency as a preferred payment method.
As the use of cryptocurrency grows, so too do innovative attack methods, which in turn give rise to the market need for increased and more sophisticated protection. Advanced attacks will demand increasingly sophisticated defense strategies. Recent data suggests that the global cybersecurity market is projected to grow from $271 billion in 2025 to over $663 billion by 2032.
In line with that growth, the crypto security market is expected to expand from $4.6 billion in 2024 to more than $21 billion by 2032.
Darktrace says the private keys that underpin the cryptocurrency system remain the primary attack surface in crypto systems. Combined with the decentralized and anonymous nature of blockchain transactions, the consequences of a single breach can be irreversible. So effective cyber defenses are no longer a luxury, they have become a necessary application as the market continues to grow.
There is a clear message being developed that cybersecurity is no longer a peripheral issue for cryptocurrency, and the two are becoming increasingly linked. Without robust security, effective regulation, and sustained and evolving enforcement and standards, the risks posed by crypto assets will continue to grow alongside their adoption.
At CYRIN we understand that continuing innovation is needed as new technologies such as crypto are developed and enter the intersection of business and commerce. As such, our new crypto lab called The Fundamentals of Cryptography, addresses some of the core issues including applications of cryptographic techniques in blockchains, password security, and data integrity.
We’ll continue to work with our industry partners to address major challenges and set up realistic scenarios that allow them to train their teams and prepare new hires for the threats they will face. Government agencies have been using CYRIN for years, training their front-line specialists on the real threats faced on their ever-expanding risk surface.
For educators, we consistently work with colleges and universities both large and small to create realistic training to meet the environment students will encounter when they graduate and enter the workforce. In an increasingly digitized world, training and experiential training are critical. Unless you get the “hands-on” feel for the tools and attacks and train on incident response in real world scenarios, you just won’t be prepared for when the inevitable happens. A full-blown cyberattack is not something you can prepare for after it hits.
The best time to plan and prepare is before the attack. Our training platform teaches fundamental solutions that integrate actual cyber tools from CYRIN’s labs that allow you to practice 24/7, in the cloud, no special software required. Our new programs, including utilizing Digital Twins, can create real-world conditions for you to practice before you must act. Cyber is a team effort; to see what our team can do for you take a look at our course catalog, or better yet, contact us for further information and your personalized demonstration of CYRIN. Take a test drive and see for yourself!