Crypto-related exploits led to $2.47 billion in financial losses during the year’s first half, with major breaches targeting Bybit and Cetus Protocol. The Bybit cold wallet incident accounted for $1.5 billion, while the Cetus Protocol hack drained $225 million.
Phishing attacks dominated incident frequency, comprising 132 events that collectively extracted over $410 million. Ethereum remained the primary target for attackers due to its extensive ecosystem liquidity.
Regulatory frameworks advanced with Hong Kong implementing its Stablecoin Bill and the European Union enforcing MiCA provisions. These developments signal increased oversight and compliance requirements across the cryptocurrency landscape.
Market dynamics showed Ethereum price volatility alongside growing Layer 2 adoption, reflecting heightened user activity despite security challenges. Institutional engagement progressed as the SEC approved Grayscale’s Digital Large Cap Fund conversion to a spot ETF, potentially accelerating Bitcoin ETF approvals.