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

Overview

In a recent report, Hacken revealed that losses in the Web3 sector have escalated to nearly $4 billion in 2025. A significant portion of these losses has been attributed to cyber thefts linked to North Korea. This situation has intensified scrutiny on regulatory bodies, which are facing mounting pressure to convert their current security guidance into enforceable regulations.

Rise in Web3 Losses

According to Hacken, the total losses in the Web3 space have surged dramatically, reaching almost $4 billion in 2025. This alarming figure underscores the vulnerabilities present in decentralized platforms and the growing threat posed by cybercriminals. A striking element of this report is the revelation that more than half of the total losses can be traced back to activities associated with North Korean hackers. This connection highlights the ongoing challenges that the Web3 ecosystem faces in terms of security and resilience against sophisticated cyber threats.

The implications of these findings are significant, particularly as they relate to the regulatory landscape. Authorities are increasingly aware of the need for robust security measures in the rapidly evolving crypto environment. As losses mount, regulators are under pressure to transform their security guidance into concrete rules that can better protect users and assets within the Web3 space. This shift from guidance to enforceable regulations may lead to more stringent security protocols and compliance requirements for companies operating in the sector.

From author

The insights provided by Hacken serve as a crucial reminder of the ongoing risks associated with Web3 technologies. As the financial stakes continue to rise, the importance of security cannot be overstated. The connection to North Korea suggests that the threat landscape is not only complex but also geopolitical in nature. This adds a layer of urgency for stakeholders within the crypto ecosystem to prioritize security measures and collaborate with regulators to establish a more secure environment.

Furthermore, the pressure on regulatory bodies to act decisively could lead to significant changes in how Web3 platforms operate. Companies may need to invest more heavily in security infrastructure and compliance mechanisms to align with forthcoming regulations. This could also pave the way for increased trust among users, which is essential for the long-term viability and growth of the crypto market.

Impact on the crypto market

• Increased scrutiny on Web3 security practices as losses reach nearly $4 billion.
• Heightened focus on North Korea’s role in cyber thefts, potentially leading to international responses.
• Pressure on regulators to convert security guidance into enforceable regulations, shaping the future of compliance in the crypto space.
• Potential for greater investment in security solutions by Web3 companies to mitigate risks.
• Possible shifts in user trust and adoption rates as security becomes a primary concern in the crypto market.
• The evolving regulatory environment may influence market dynamics and the operational frameworks of decentralized platforms.