Preventing Large-Scale Crypto Hacks: Key Security Measures for Exchanges

Following the bybit Exchange Hack On February 21, 2025, the cryptocurrency industry is Once Again Reminded of the Concrete Consequences when Threat Actors Identify and exploit vulnerabilitities in Crypto Platforms or Their Supply Chains. The Attack, which results in the theft of Nearly $ 1.5 Billion Worth of Ether (ETH), Highlights The Nail Threat Pose by Sophisticated Cybercriminals, Including State-Sponsored Actors Like Those Affiliated with the Democratic People's Republic of Korea Korea Korea (DPRK).

Recent Findings from Our 2025 Crypto Crime Reveal Report A Concerning Trend: North Korea-Affiliated Hackers Were Responsible for Stealing Approximataly $ 660.5 million across 2023. In 2024, That Figure Frued to $ 1.34 Billion across 47 incidents-A 102.88% Value Stolen. The Bybit Hack Alone Account for More Thani Dprk Hackers Stole Throughout the Entire Previous Year, Undersscoring The Urgent Need for Enhanced Security Measures Across the Industry.

The good news is that a broad array of steps can be taken to prevent such attacks. Crypto users can Leverage Free Resources to Verify Transactions and Increase Their Security On- and Off-Chain. For Example, Accessible GitHub Scripts Can Help Crypto Users Output Domains, Messages, and Safe Transaction has in order to Easily Compare them Against Values ​​Displayed on Ledger Hardware Wallet Screens.

In this blog, we'll discussion key security measures exchanges can take to take large-scale hacks, best practices for securing digital assets, and how rapid responsibility strategies can minimize damage in the event of an attack.

How the Industry Can Strengthen Its Defenses

Based on conversations with chief Information Security Officers (Cisos) in the Industry, The Following Are Some of the Top Security Measures We Are Seeing Exchanges Implement:

Web2 Security

• Endpoint Detection and Response (EDR): Tools like Sentinelone and Crowdstrike can help identify and mitigate potential threats on employed hardware devices.
• Segregating Signing Computers from the Internet: Air-Gapped Devices SHOULD BE DEDICATED SOLEY TO SIGNING TRANSAGES TO MINIMIZE EXTERNAL TO EXTERNAL THREATS.
• LOCKING DOWN HARDware That Connects To Cold Storage: Any Device Used to Access Cold Wallets Should Be Heavavil Secured and Aggressively Access-Controlled to Prevent Unauthorized Access.

• Securing API Key Storage With Hardware Security Modules (HSMS): HSMS Help Prevent unauthorized Access and Ensure Cryptographic Integrity.

Web3 Security

• Strict sign communication protocols: A dedicated processes for communication between signs that all approvals are properly contextualized and verified before execution.
• Multi-Party Computation (MPC) Wallets with Strong Quorum: MPC Wallets, Such as Those Developed by Fireblocks and Fordefi, Reduce Reliance on Single Points of Failure in Key Management.
• Wallet-Level Policy Controls: Some solutions Implement Policy Entorcement Directly on Wallets, Such As Restricting Individual Transfers to A Set Limit, Such As $ 1 million.

• Co -aging/Transaction Validation: Chainalysis hexagate, which USES Machine Learning to Provide Real-Time Web3 Security Solutions that Detect and Mitigate Cyber ​​Threats, Acts as an independent Cosign and transaction validator to analyze transactions before they are signed. This Layer Helps Detect Malicious Transactions, Flags Anomalies, and Automatically Denies High-Risk Operations Before they are executed.

• Real-time on-chain monitoring and responsibility: Chainalysis Hexagate continuously tracks Fund Movements to ensure Transactions Comply With Security Policies. This includes Verifying that funds are smell only to authorized addresses, abnormal detecting transaction sizes or patterns, and identifying potential compromises. In Case of a Security Event, Automated Mitigation Playbooks can be automatically triggered, Such as moving assets to cold storage, swapping tokens to reduce exhibition, or unwinding risky positions. For instance, Chainalysis Hexagate was able to use real-time monitoring to see attackers stole cmeth from mantle, and therefore could alert mantle to pause the funds.

Why Real-World Security Matters Just As Much

Off-chain vulnerabilities can be just as costly as on-chain threads, Howwever. For instance, some Security Breaches Have Been Linked to North Korean It Workers Infiltrating Crypto and Web3 Companies by Using False Identities and Third-Party Hiring Intermediaries. A Recent US Department of Justice (DoJ) Case Indicted 14 DPRK Nationals who exploited Remote Work Opportunities To Steal Propietary Information and Extort Employers, Generating More Than $ 88 million. To combat such threads, organizations Should Follow Guidance from FBI, Cisa, and other authorities, Including Thorough Back Hacks, Monitoring Network Activity for Anomalies, and Training Employees on Social Engineering Tactics.

If you are interested in How to Best Prevent and Responde To Hacks, Schedule A Time to Speak With Chainalysis Hexagate here.

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