3 Incidents That Rocked the Crypto Markets in 2025
2025 proved to be a year of unprecedented highs and lows for digital currencies. The crypto space, known for its volatility, experienced significant turbulence fueled by several high-profile incidents that shocked investors and shook market confidence. Here's a look at 3 of the biggest events that impacted cryptocurrencies in 2025.
1. The Terraform Labs Collapse: Terra (LUNA) & UST
Perhaps the most significant event of the year was the collapse of Teraform Labs' cryptocurrency, namely Terra (LUNA) and the Terra USD (UST) stablecoin. This event sent shockwaves through the market, triggering a widespread sell-off and exposing vulnerabilities within the algorithmic stablecoin model. Then last, investors lost considerable sums, highlighting the risks associated with even seemingly stable digital assets.
2. Major Hacks & Cybercrimes: The Poly Network Breach & Beyond
Cybercrimes grew dramatically to a new level in 2025, and the crypto markets were negatively affected as investors lost confidence. Cryptocurrency hacking is a persistent threat, and 2025 saw several high-profile hacks, such as the breach of the DeFi platform Poly Network, which resulted in losses exceeding $600 million. These incidents highlighted the ongoing security challenges within the decentralized finance (DeFi) space and eroded investor trust. The increased sophistication of cyberattacks prompted calls for enhanced security measures and regulatory oversight.
3. Market Crashes & Confidence Erosion
The collapse of major entities and persistent cyber threats contributed to significant market crashes throughout 2025. These crashes further eroded investor confidence, leading to increased scrutiny of the crypto industry. Understanding what led to these crashes is vital, and Ilya “Dutch” Lichtenstein's case brought market manipulation to the forefront. What Are the Top 3 Lessons From the 2025 Crypto Crash? As we’re inching into the new year, it’s useful to look back at 2025 in crypto, and learn from the mistakes made, paving the way for a more stable and secure future.