Crypto Thefts Reach $163M in August as Hackers Target Bigger Prizes

In August, hackers and scammers stole more than $163 million in cryptocurrency across 16 separate incidents, with a major social engineering attack on a Bitcoin holder making up the largest portion of losses.

Blockchain security firm PeckShield reported on X that the August total represents a 15% increase from July’s $142 million, though it is still down 47% compared to the same period last year.

Hackers Shift Focus to High-Value Targets

PeckShield told that attackers appear to be changing strategies, now prioritizing centralized exchanges and large individual holdings. Two incidents were primarily responsible for inflating August’s losses.

• A single Bitcoiner lost 783 BTC — worth $91 million at the time — after falling victim to a social engineering scheme. Hackers posed as representatives of a crypto exchange and hardware wallet support team, tricking the user into transferring funds in one transaction.
• Turkish crypto exchange Btcturk suffered nearly $50 million in losses when attackers accessed its hot wallets. This marked its second major breach, following a nearly identical attack in June 2024.

Despite these high-profile cases, PeckShield noted that the overall number of hacks has been declining. There were 16 incidents in August, compared to 17 in July and 20 in June. “Looking at the broader picture over the past eight months, the total number of hacks has shown a decreasing trend. This is positive news and suggests improvements in overall ecosystem security,” the firm said.

Rising Prices Fuel Exploits

According to Hank Huang, CEO of Kronos Research, the surge in crypto prices is contributing to the increase in attacks. Both Bitcoin and Ether reached new all-time highs in August, with BTC topping $124,000 on Aug. 14 and ETH surpassing $4,946 on Aug. 24.

Huang explained that as asset prices rise, so do the rewards for attackers, making high-value targets more attractive. “August’s surge highlights how attackers are zeroing in on centralized wallets using sophisticated phishing and social engineering to expose operational weaknesses,” he said.

Losses Trending Down, But Risks Remain

While August’s $163 million figure was significant, it followed a broader downtrend in losses earlier this year. June saw $176 million stolen, which was already a 54.2% decrease from May’s $385 million. July’s total was $142 million.

Still, Huang warned that losses may continue climbing for the rest of the year, fueled by both surging crypto prices and the slow pace of improvements in security technology.

Future Tech Could Reduce Damage

Huang added that emerging technologies could help limit the damage in the long run. “As emerging technology advances, AI-driven improvements and stronger security models should help cushion the impact in the future,” he said.

PeckShield also advised that individuals and corporations with large holdings need to adopt stronger protections. “We recommend that high-value targets — both corporations and individuals — should be increasingly vigilant and proactively implement robust security measures,” the firm said.