Over 50% of some cryptographic protocol volumes contain stolen funds. In 2025, $2.1 billion has been stolen so far through Crypto Hacks. The Tron blockchain “Black U” market is worth up to $10 billion.
The crypto industry is facing a new wave of crime driven by an increase in politically supported coins of memes and an increase in legal loopholes that continue to protect malicious actors.
Blockchain investigator ZachxBT, known for tracking chain fraud, warned in a recent post about X that crypto-related crimes have entered the “supercycle” and that fraudulent activities have become more refined and widespread.
His comments come even within the broader industry calculations, as high-value hacks, phishing schemes, and misuse of distributed protocols could undermine trust in the space.
Obsolete court decisions and unconfirmed influencers add to the issue
According to ZachxBT, one of the main reasons behind the surge in crime is the way courts keep smart contract exploiters on their side due to the abolished legal framework.
Often, those operating decentralized systems are free to walk as judges interpret code-based exploits as fair use rather than theft.
He also highlighted the role of influencers and key opinion leaders (KOLSs) in promoting fraudulent crypto projects without facing consequences.
In jurisdictions that did not disclose paid advertising, it is illegal and enforcement remains weak or non-existent.
Zachxbt estimated that regulators have been fined between $50 million and $100 million over the years for holding such individuals and projects accountable.
In a tweet, he said, “If you wanted the opportunity to extract from the industry, there was no better time,” referring to the sense of lawlessness that currently controls ecosystems.
He added that more than half of all trade volumes for certain protocols include stolen funds, but the team continues to collect fees without scrutiny.
Criminals leverage blockchain transparency and weak surveillance
Blockchain technology allows for full transaction transparency, which helps track illegal funds, but ZachxBT said that bad actors on network activity and vulnerability allow crime by giving insights.
It is said that North Korea-related groups such as Lazarus have used this.
Zachxbt suggested that the laundry group and OTC brokers had processed stolen funds from platforms such as Bybit, DMM Bitcoin, and Wazirx.
These operations are performed undetected over a long period of time due to the amount and complexity of transactions involved.
He also claimed that a shadow market, called “Black U,” appeared on the Tron blockchain, with estimates appearing between $5 billion and $10 billion.
Many of this activity is suspected to involve washing operations that are difficult to track despite records on the blockchain.
Losses continue to rise across the industry in 2025
Zachxbt’s warning matches installation of evidence of damage. More than $2.1 billion has been lost to crypto attacks so far in 2025, according to blockchain security company Certik.
In May alone, cybersecurity company Peckshield reported 20 important crypto hacks worth $244.1 million in stolen assets.
This is down 39.29% from April, but the scale of the ongoing theft is surprising.
The recent rise in data leaks has further exposed user vulnerabilities, highlighting the need for strong protection.
Zachxbt concluded his statement by questioning whether the changes in the body would only occur due to massive losses for regulators to act.
For now, the combination of speculative enthusiasts, regulatory gaps, and unidentified promotions continues to create a fertile environment for crypto-related crime.
