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Recent research from CertiK reveals a significant increase in cryptocurrency theft worldwide during the first quarter of 2025, with reported losses totalling $1.7 billion. This figure represents a staggering 330% surge compared to the previous quarter, primarily driven by major exchange breaches.
Notably, a $1.45 billion theft compromised Bybit, as hackers exploited vulnerabilities in its hot wallet systems. According to CertiK's analytical findings, attackers employ various methods, including phishing techniques, social engineering, and artificial intelligence fraud.
They also manipulate smart contracts. Compromise incidents primarily contribute to the total number of attacks, often resulting from code vulnerabilities and the exposure of private keys.
While these incidents are less frequent, they tend to involve smaller events. The significant total of 197 security incidents recorded during Q1 highlights the urgent need for improved security measures and regulatory standards for cryptographic assets.
The compliance technology provider AMLBot has saved clients over $100 million in cryptocurrency losses since 2019. Modern compliance frameworks are essential for combating threats that continue to rise, according to AMLBot CEO Slava Demchuk.
AMLBot uses wallet screening and machine learning for pattern detection and real-time monitoring features. Demchuk shared his perspective on compliance systems, stating they need robust security features to maintain integrity.
AMLBot established multiple user controls at the account level and developed separate viewing dashboards and restricted onboarding approaches dedicated to business teams as part of its security measures. The company maintains close cooperation with law enforcement agencies worldwide to both identify stolen funds and dismantle fraudulent operations.
Public-private partnerships have achieved their goal of enhancing cryptocurrency crime prevention through cooperation with the Thai police. Demchuk stated that KYC processes and PEP screening must be centralised through international standards despite local authority laxity.
The growing acceptance of digital assets by institutions and sovereign bodies demands regulatory oversight to establish confidence in the ecosystem. The framework named European Union's Markets in Crypto-Assets (MiCA) legislation compels businesses to improve risk management and conduct thorough examinations.
According to Demchuk, proactive compliance integration enables crypto firms to fulfil institutional standards, which results in sustainable organisational growth. According to his warning, the sector needs proper controls to bypass market acceptance obstacles and establish long-term credibility.
The cryptocurrency market plans to reach $5 trillion in value, but experts emphasize that robust cyber defences and universal compliance systems are needed to duplicate the protection success against massive cyberattacks.
