RWA Protocol Exploits Hit $14.6M in First Half of 2025, Surpassing 2024 Losses
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Growing adoption of tokenized real-world assets expands attack surface for hackers
Security threats targeting real-world asset (RWA) tokenization protocols have surged in 2025, with reported exploits reaching $14.6 million in the first half of the year, according to a new report from blockchain security firm CertiK. This figure already exceeds the $6 million lost in all of 2024 and may outpace the $17.9 million recorded in 2023.
Why RWA Protocols Are Being Targeted
RWA tokenization involves minting financial instruments and tangible assets on blockchain networks, improving accessibility and liquidity for global investors. However, this innovation introduces a “hybrid” risk model, blending onchain vulnerabilities with offchain operational weaknesses.
CertiK’s report notes that all recorded exploits stemmed from onchain and operational failures, signaling a major shift in the RWA security landscape:
“Key risks emerge because offchain processes involve human actors, legal interpretations, and operational workflows,” the report states.
Attack vectors include oracle price manipulation, custodial breaches, fraudulent proof-of-reserves attestations, and private key compromises.
Major Incidents in 2025
Zoth Restaking Protocol suffered the year’s largest attack on March 21, losing $8.5 million after a compromised private key enabled unauthorized withdrawals.
A separate exploit in the same month saw attackers mint $385,000 in assets without collateral due to a smart contract logic flaw.
Loopscale was hit on April 26 with a $5.8 million oracle manipulation exploit, though the protocol later recovered $2.8 million of stolen funds.
Market Growth Fuels Attack Incentives
The RWA market surged over 260% in H1 2025, reaching $23 billion in total valuation by June, driven by tokenized private credit (58% market share) and tokenized U.S. Treasuries (34%), according to Binance Research. As institutional adoption accelerates and regulatory clarity improves, hackers see RWA protocols as high-value targets.
Experts warn that traditional DeFi security measures are not enough for RWA protocols, which depend on offchain legal frameworks and human-controlled processes. CertiK emphasizes the need for multi-layered security audits, robust key management, and enforceable legal agreements to mitigate risks in this rapidly evolving sector.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
