The cryptocurrency market experienced a significant financial shock in the first quarter of 2025, with hackers stealing an unprecedented $1.63 billion. This massive theft was largely driven by a devastating attack on Bybit, which accounts for nearly all of these losses (92%). While this staggering figure paints a grim picture, deeper analysis reveals more complex factors driving the vulnerability. Exploited vulnerabilities in ecosystems and weaknesses in resilience are key contributors to this crisis, potentially threatening the very foundations of decentralized finance. The Bybit attack served as a dramatic catalyst, leaving a trail of $1.53 billion stolen and dismantling its infrastructure in the process. This unprecedented heist exposed previously concealed weaknesses, leading to a surge in attacks on DeFi protocols, lending platforms, and trading systems, indicating a shift in hacker strategies from exploiting smart contracts to targeting institutional wallets. While losses escalated dramatically at the start of 2025 ($87 million in January), February saw a catastrophic downturn with Bybit suffering a devastating breach, followed by Infini ($50 million), zkLend ($9.5 million), and Ionic ($8.5 million). This surge in attacks, while overshadowed by Bybit’s attack, highlights the increasing threat of sophisticated hacking techniques targeting various crypto infrastructures. Though March saw a temporary reprieve with a 97% decrease in thefts to just $33 million, this respite should not be misinterpreted as an improvement in security; it merely represents a tactical pause for hackers to digest their gains and for protocols to temporarily reinforce defenses while facing growing threat levels.