North Korea-linked theft and poor key security dominate Web3 losses: Hacken

Overview

According to Hacken, a cybersecurity firm, losses in the Web3 sector have surged to nearly $4 billion in 2025. A significant portion of these losses, over half, can be attributed to activities linked to North Korea. This alarming trend has intensified calls for regulators to transform security guidelines into enforceable regulations.

Web3 Losses and North Korea’s Role

Hacken’s report highlights a troubling rise in financial losses within the Web3 ecosystem, which encompasses decentralized technologies and blockchain applications. The figure of nearly $4 billion in losses underscores the vulnerabilities that persist in this rapidly evolving space. Notably, North Korea has been identified as a key player in these detrimental activities, responsible for over half of the reported losses.

The implications of this situation are twofold. Firstly, the involvement of state-sponsored actors like North Korea raises concerns about the security of digital assets and the potential for geopolitical tensions to spill over into the digital realm. Secondly, the scale of the losses reflects a pressing need for improved security measures within the Web3 sector.

As incidents of theft and hacking continue to plague the industry, there is an increasing urgency for regulatory bodies to step in. The current guidelines, which have been described as recommendations rather than obligatory rules, may not be sufficient to protect users and investors. Stakeholders are advocating for a shift from advisory frameworks to concrete regulations that mandate enhanced security practices.

From author

The findings presented by Hacken shed light on an ongoing issue within the cryptocurrency and blockchain sectors. The significant involvement of North Korea in cyber theft not only raises questions about national security but also highlights the broader implications for the global economy. As Web3 technologies gain traction, the need for robust security measures becomes ever more critical. The potential for regulatory intervention could reshape the landscape of digital asset security, ensuring that stakeholders are better protected against malicious activities.

The challenge lies in balancing innovation with security, as overly strict regulations could stifle the growth of the Web3 ecosystem. However, the rising losses and the involvement of state-sponsored actors may force regulators to take a firmer stance on security protocols.

Impact on the crypto market

• The reported $4 billion loss in Web3 could undermine investor confidence in decentralized technologies.
• North Korea’s involvement in cyber theft may lead to increased scrutiny and sanctions from the international community.
• The push for regulatory changes may create a more secure environment for investors, potentially attracting new participants to the market.
• Heightened security measures could result in increased operational costs for Web3 projects, affecting their profitability.
• The evolving regulatory landscape may influence the development of new security technologies and practices within the crypto industry.