Record Crypto Theft In 2025 Will Accelerate Shift From Exchanges to Bitcoin ETFs
In May, 2025, Coinbase (NASDAQ:COIN) announced that it faced a security breach unlike any other. It wasn’t a hack. No one had their account details stolen. But the operation led to Coinbase account owners personal details being handed over to cybercriminals who then phoned these people, telling them that the Coinbase “hack” required they move money off chain and into their Coinbase wallet. Somehow, these thieves managed to clone these wallets and those who fell for this trick had their wallets emptied out within days.
A few months later, a California-based artist named Ed Suman was the subject of an unfortunate Bloomberg article saying he lost over $2 million to the fake Coinbase scammers. There is nothing Coinbase can do to get it back. The 67-year old Suman’s millions are in some cybercriminals bank account somewhere. Reuters estimated around $400 million was stolen from Coinbase customers.
“Recent security incidents have made it clear that investor confidence cannot be rebuilt solely through individual defensive behavior,” said Wish Wu, co-founder of the Pharos Network, a Layer-1 blockchain that works as a programmable financial layer across Web2 and Web3 ecosystems. “When users are forced to rely on self-custody expertise and constant vigilance, it signals a deeper infrastructure gap,” Wu said from Hong Kong.
It also signals to retail investors that it is better to buy the crypto ETFs than set up an account on a cryptocurrency exchange.
Cryptocurrency Theft Breaks Records Again
Some $3.4 billion in cryptocurrency holdings were stolen in 2025, according to Chainalysis, beating 2024 theft. Bybit exchange’s roughly 400,000 Ethereum theft made up nearly half of the theft last year. This year will be no different. Crypto wallets and exchanges are subject to cybercriminals and scams. Securities and Exchange Commission regulated asset managers, on the other hand, are able to provide cryptocurrency investors a sleep-at-night security layer.
Data on spot Bitcoin ETFs in 2025 showed net inflows of around $26 billion — indicating a steady and growing investor interest in these regulated, theft-proof vehicles.
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