Fireblocks Report Highlights Evolving Crypto Security Risks Amid Rising Attacks

Rising threats from API exploits, phishing attacks, and insider vulnerabilities highlight the urgent need for industry-wide collaboration and advanced security measures

NEW YORK, March 4, 2025 /PRNewswire/ -- Fireblocks, an enterprise platform for managing digital asset operations and building innovative businesses on blockchain, today released its latest report: The New Frontier of Crypto Security, providing an in-depth analysis of the sophisticated and rapidly evolving threat landscape facing institutional and retail digital asset markets.

Digital asset markets have grown substantially in recent months, surpassing $3.2 trillion in value, with assets locked in DeFi exceeding $134 billion for the first time in three years. The growth of Bitcoin ETFs and tokenized real-world assets (RWAs) continue to fuel institutional adoption. However, security risks have scaled in tandem. 

In just the first two months of 2025, the Bybit hack alone has accounted for $1.5 billion in stolen crypto assets, reinforming the need for stronger access controls and end-to-end security solutions across the digital finance ecosystem

Key Attack Vectors from The New Frontier of Crypto Security Report:

• API Exploits: Poorly secured API keys have enabled large-scale financial thefts, bypassing traditional security measures.
• Private Key Theft: Sophisticated credential theft and unauthorized access attempts continue to compromise CEXs, custodians, and wallet providers.
• Multi-Step Deposit Fraud: Attackers exploit delayed on-chain transaction reconciliations to fabricate deposits and withdraw unbacked funds.
• AI-Powered Phishing & Deepfake Attacks: Cybercriminals are deploying deepfake videos, voice cloning, and AI-generated phishing campaigns to manipulate employees and executives.
• Governance & Insider Risks: Weak governance structures expose treasury operations, smart contract deployment, and token issuance to internal threats.
• Smart Contract Vulnerabilities: DeFi protocols remain at risk due to unverified code, unchecked upgrade mechanisms, and external dependency exploits.

"Crypto security is the most critical issue facing institutions today," said Shahar Madar, VP of Security and Trust Products of Fireblocks. "As adoption skyrockets, attackers are shifting tactics—focusing on infrastructure vulnerabilities, API frameworks, and governance loopholes. The latest high-profile incidents, including the Bybit exploit, demonstrate the need for nation-state level, end-to-end security by high stakes businesses in the space."

To counter these threats, organizations must adopt a proactive, end-to-end security approach that enforces protection at every stage of crypto operations. This includes secure-by-design architecture, robust governance & policy enforcement, and real-time transaction monitoring to prevent manipulation and exploits. Adaptive security frameworks, role-based access models, and automated fraud detection will be key to outpacing cyber threats.

"These attacks are not about any one exchange or custodian—they underscore a systemic need for stronger, more adaptive security measures across the entire digital asset ecosystem," Madar added. "The industry must take collective action to safeguard infrastructure, strengthen access controls, and stay ahead of evolving threats. At Fireblocks, we're committed to providing the security architecture that helps institutions protect their assets, their users, and the broader market."

Fireblocks continues to provide the most secure, scalable solutions to safeguard the next billion users as digital assets integrate further into global finance.

Fireblocks' full report is available here.

About Fireblocks

Fireblocks is the world's most trusted and proven digital asset infrastructure company, empowering organizations of all sizes to build, run and grow their business on the blockchain. With the industry's most secure, scalable and comprehensive platform, we streamline custody, tokenization, payment, settlement, and trading operations across the largest ecosystem of exchanges, custodians, banks, payment providers and stablecoin issuers in the world. Over 2,000 organizations - including BNY Mellon, Galaxy, and Revolut - trust Fireblocks to secure more than $7 trillion in digital asset transactions across 100+ blockchains and over 300 million wallets. Learn more at fireblocks.com.

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SOURCE Fireblocks