The Bybit breach in February resulted in over $1.4 billion stolen by North Korean hackers, marking a severe security crisis in the crypto space with $2.1 billion lost to attacks in the first half of 2025. Centralized exchanges (CEXs) need to enhance transaction safety by manually decoding call data and employing intelligent co-signers to validate transactions. Hackers are increasingly exploiting interfaces to authorize fraudulent transactions. Meanwhile, decentralized finance (DeFi) protocols must develop robust safeguards to prevent their infrastructure from being misused. With frequent hacks eroding consumer confidence, a collaborative approach between CEXs and DeFi is necessary to protect the industry. Responsible DeFi developers must establish sound governance and security models to mitigate systemic risks. Self-regulation could sustain the crypto market and prevent excessive restrictions by regulators, which might penalize lawful users. A balance between freedom and responsibility in the market is crucial, potentially implementing standards for security without stifling innovation.

Source 🔗