Crypto project hacks — how to prevent attacks

Why are hackers targeting crypto projects?

In 2025, cyberattacks on crypto projects continue to inflict multi-million dollar losses on the industry. In November alone, the volume reached a record $194 million. Projects such as Balancer v2 ($137.4 million), the Upbit exchange ($36 million), and the Yearn Finance and GANA protocols were particularly affected. These cases highlight the need for strengthened cybersecurity and stricter transaction controls. Let’s break down the main risks and the most effective protection measures.

The primary reason for successful attacks is vulnerabilities in crypto protocol infrastructure. Smart contracts, excessive reliance on hot wallets, and weak audits are becoming weak points for cyberattacks. For instance, Balancer v2 lost assets due to bugs in its code, while Upbit fell victim to data leaks related to insufficient hot wallet protection.

Hackers also actively use methods such as:

• Exploiting transaction logic vulnerabilities
• Phishing attacks and administrative access breaches
• Using dirty crypto to launder stolen funds

Who is at risk?

Attacks on crypto projects have consequences for both large companies and individual users.

• Investors: Often lose their assets entirely due to frozen funds or transfers to wallets with sanction marks.
• Project Developers: Risks of financial and reputational losses threaten the further development of platforms.
• The Crypto Industry as a Whole: Loss of market participant trust slows down the adoption of blockchain technologies.

How to protect against crypto project hacks?

Asset protection depends on using both technical solutions and implementing strict transaction monitoring procedures. Key tips include:

1. Address verification before transactions

Before sending cryptocurrency, it is essential to perform AML screening control. This allows for the identification of wallets with suspicious activity linked to money laundering or terrorist financing. Use specialized services that integrate sanction marks and monitoring through databases like Chainalysis and Elliptic.

2. Regular audits and code security

Projects should invest in periodic smart contract assessments. Professional audits from PeckShield or CertiK will help detect weak points in time.

3. Cold wallets for storing large amounts of capital

Hot wallets are only suitable for transactional activity. Keep main funds in cold wallets that are not accessible online.

4. Monitoring transaction anomalies

Implementing solutions to track suspicious operations, such as fund fragmentation or rapid multiple transfers to unverified addresses, helps minimize damage.

5. KYC and user education

Regularly educating users on the basics of cyber hygiene, as well as implementing KYC procedures for client verification, will enhance overall security.

The role of AML and monitoring in preventing attacks

The integration of AML screening and monitoring systems strengthens the protection of crypto funds. An example is the work of GANA, where regular transaction checks help avoid receiving funds flagged as dirty crypto. Effective address monitoring helps quickly block accounts involved in suspicious activity.

Conclusion

The wave of cyberattacks on crypto projects highlights the need for a comprehensive approach to security. Address verification, regular audits, and the implementation of strict transaction monitoring are key steps toward protecting assets. Responsible use of digital technologies and the transparency of every market participant's actions create the conditions for the sustainable development of the crypto industry.