Web3 Faces $266M Security Risks, SlowMist Reports

SlowMist Identifies $266M in Web3 Breaches

In May 2025, SlowMist identified $266 million in losses from Web3 security breaches. These events included substantial incidents such as the Cetus Protocol exploit, which significantly disrupted several token pairs, particularly within the Sui ecosystem.

The Cetus Protocol attack on May 22, 2025, accounted for the majority of the losses. SlowMist’s role has been pivotal in tracking and reporting these incidents, providing detailed forensic analyses and monthly security updates highlighting critical vulnerabilities.

Liquidity Drained Amidst Security Challenges

These security breaches have led to a notable depletion of liquidity in affected protocols, reducing trading volumes and boosting price slippage. Developers have promptly responded by deploying patches and initiating audits across impacted systems.

Historically, such incidents prompt heightened regulation and scrutiny from financial institutions. Potential technological advancements may arise as stakeholders strive to fortify ecosystem security against repeated attacks, according to SlowMist reports and industry analysts.

Historic Losses Highlight System Vulnerabilities

In January 2025, Web3 endured losses amounting to $98 million from 40 hacking events. These involved exploit vectors common in current incidents, such as smart contract vulnerabilities and phishing, as noted by SlowMist.

Expert analysis from Kanalcoin suggests continued risks unless robust security measures are implemented. Historical patterns emphasize systemic vulnerabilities, stressing the importance of proactive defensive strategies to mitigate potential financial and technological fallout.

“In May 2025, SlowMist reported approximately $266 million in total losses from Web3 security breaches, with 15 recorded hacking incidents accounting for about $257 million in direct losses.” — SlowMist Team, Security Analysis Firm, SlowMist