The recent Bybit breach, in which North Korean hackers stole over $1.4 billion, has underscored the vulnerabilities in both centralized exchanges (CEXs) and decentralized finance (DeFi) protocols. In the first half of 2025, $2.1 billion worth of crypto has been lost to attacks, highlighting the need for significant changes in transaction security. CEXs must adopt advanced solutions like intelligent co-signers, stronger transaction monitoring, and multi-party computation to prevent infrastructure exploits. Meanwhile, DeFi protocols should enhance their defenses against illicit fund movements by implementing robust transaction monitoring and risk management systems. Collaboration among exchanges and DeFi platforms is essential to tackle this common threat effectively, as ongoing hacks could lead to increased regulatory scrutiny that harms compliant actors. As DeFi platforms operate without centralized oversight, self-regulation becomes crucial to build security frameworks that discourage hacking. Developers should collectively establish sound governance models and continuous security reviews to preserve user trust while maintaining decentralization. This balance of freedom and responsibility is vital for the future of cryptocurrency, requiring time, investment, and innovative approaches to ensure a secure ecosystem.

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