Crypto exchange security: key recommendations

In 2024–2025, the topic of crypto exchange security has gained new relevance

The wave of attacks on centralized exchanges (CEX) and decentralized platforms (DEX) has led to billions of dollars in losses. Users face risks of instant loss of funds, account blocking, and loss of trust in platforms. In this article, we will break down high-profile incidents and provide practical recommendations on how to protect your assets.

What was happening: figures and cases

According to Chainalysis, in 2024, attackers stole approximately $2.2 billion in crypto assets, and by mid-2025, the amount of stolen funds reached $2.17 billion. Examples of the largest attacks:

• Bybit (February 2025): a cold wallet hack led to the theft of 401,000 ETH (~$1.5 billion). The FBI points to North Korean hackers.
• Multichain (March 2024): an exploit that caused a loss of approximately $200 million. The Fantom Foundation filed a lawsuit to recover the funds.

These cases showed that even large platforms with long-standing reputations are not immune to vulnerabilities.

Why are crypto exchanges targets for hackers?

1. Hot wallets: constant network connection makes them an easy target for attacks.
2. Multi-chain systems: complex integrations increase the likelihood of exploits.
3. Social engineering: phishing, employee compromise, and data leaks.
4. Configuration errors: lack of access segmentation and emergency response procedures.

How to protect your assets: a security checklist

1. Check addresses before transferring

Use platforms for AML screening to ensure there are no links to "dirty crypto" or sanctions labels. This will help avoid account blocking and loss of funds. Such checks are available through services like Chainalysis.

2. Store funds on cold wallets

Never keep large amounts on an exchange. Use hardware wallets (Ledger, Trezor) or multi-signature (multisig) setups for long-term storage.

3. Enable 2FA and set up a whitelist

Two-factor authentication (2FA) and restricting withdrawal addresses (whitelisting) significantly reduce the risk of hacking.

4. Check exchange reporting

Choose platforms with transparent policies, proof-of-reserves, and active compliance with KYC/AML standards. This reduces the likelihood of the exchange being used by bad actors.

5. Monitor your transactions

Use analysis tools, such as Chainalysis Hexagate, to track suspicious operations. This will help detect anomalies in time and prevent losses.

The role of KYC and AML in asset protection

KYC and AML procedures play a key role in preventing illegal operations. Exchanges with a strong compliance policy are able to respond faster to suspicious transactions and block withdrawals. For example, after the February attack on Bybit, Chainalysis analysts helped identify criminal addresses, which accelerated the investigation process.

Summary: what to do right now?

1. Move your funds to cold wallets.
2. Check your exchange for KYC/AML compliance and the presence of proof-of-reserves.
3. Enable 2FA and regularly monitor your transactions.
4. Subscribe to news regarding crypto exchange security.

Security is not only the responsibility of the exchange but also the user. Following basic precautions will help protect your assets and minimize risks.