Big Crypto Hacks: Bad Crypto News of the Week

The crypto world never sleeps, and this week it was wide awake for all the wrong reasons. From a record-shattering $1.4 billion exploit on Bybit to ripple effects felt across the market, it's been a turbulent seven days. Forget calm seas; we're talking a full-blown crypto storm. If you've been busy navigating the real world and missed the drama unfolding on CryptoTwitter, don't worry – we've got you covered. This week’s headlines have been dominated by significant hacks, prompting renewed concerns about security vulnerabilities in the digital asset space. Bitcoin took a dip, Ethereum plunged further, and fear, ever-present in the crypto market, intensified. But it wasn't all doom and gloom. We also saw some positive developments, like growing XRP sentiment fueled by Trump's comments and Brazil's approval of a spot XRP ETF. Buckle up, because we're diving deep into the big crypto hacks and the broader market shifts that defined this past week.

The good news for cryptocurrency investors arrived just after 8 a.m. on Friday: Coinbase, the largest crypto marketplace in the United States, had reached a deal with U.S. regulators to dismiss a

Bybit's Billion-Dollar Blow: The Biggest Crypto Hack Ever?

The undisputed headline of the week goes to Bybit, a major cryptocurrency exchange, which suffered an attack of unprecedented scale. Hackers reportedly made off with over $1.4 billion worth of Ethereum and related tokens from the exchange's cold wallet. To put that into perspective, that sum rivals some of the largest traditional financial heists in history! Bybit's CEO, Ben Zhou, was quick to acknowledge the breach, confirming that the platform's multi-signature ETH cold wallet had been compromised. This wasn't your typical exchange hack, either. Unlike previous incidents like the Mt. Gox or Coincheck breaches, which often involved private key leaks or direct wallet breaches, the Bybit attack appears to have been an infrastructure-level exploit. This sophisticated approach is deeply concerning, suggesting that hackers are becoming increasingly adept at targeting the fundamental architecture of crypto exchanges.

A company which fell victim to what's thought to be the world's biggest ever theft is seeking to recover some of its losses by crowdsourcing online bounty hunters. Last week, hackers believed to

The Aftermath: Market Panic and Withdrawal Frenzy

The news of the Bybit hack sent shockwaves through the crypto community, triggering a wave of panic selling. Ethereum prices, in particular, took a hit, dropping by more than 4% in the immediate aftermath. The breach also sparked a massive surge in withdrawal requests from Bybit users. According to reports, the exchange received over 350,000 requests from customers looking to safeguard their funds. While Bybit has assured users that it remains solvent and will cover any losses, the incident has undoubtedly shaken confidence in the security of centralized exchanges.

But news of the hack led to a surge in withdrawal requests. Bybit chief executive Ben Zhou said the company had received more than 350,000 requests from customers to withdraw their funds.

What Can We Learn From the Bybit Hack?

The Bybit hack serves as a stark reminder of the inherent risks associated with cryptocurrency exchanges. Here are a few key takeaways:

• Cold wallets aren't impenetrable: While cold wallets are generally considered more secure than hot wallets, they are not immune to sophisticated attacks.
• Infrastructure security is paramount: Exchanges need to prioritize security at every level of their infrastructure, not just at the wallet level.
• Diversification is key: Don't keep all your eggs in one basket (or all your crypto on one exchange). Spreading your holdings across multiple platforms and using self-custody solutions can mitigate risk.
• Due diligence is essential: Research the security practices of any exchange before entrusting them with your funds. Look for exchanges with robust security measures, transparent auditing processes, and insurance coverage.

Suspected BitoPro Hack: Another Exchange Under Attack

Adding to the week's woes, BitoPro, a Taiwan-based cryptocurrency exchange, also reported a hack. According to blockchain investigator ZachXBT, the exchange was likely attacked, resulting in estimated losses of up to $11.5 million from its hot wallets. While smaller in scale than the Bybit breach, the BitoPro incident further highlights the vulnerability of cryptocurrency exchanges to cyberattacks.

The Importance of Hot Wallet Security

Hot wallets, which are connected to the internet, are inherently more susceptible to hacking than cold wallets. However, exchanges rely on hot wallets to facilitate quick and easy transactions for their users. Therefore, robust security measures are crucial to protect these wallets. These measures include:

• Multi-factor authentication (MFA): Requiring multiple forms of verification to access wallets.
• Regular security audits: Conducting periodic assessments of the exchange's security infrastructure.
• Intrusion detection systems: Monitoring for and responding to suspicious activity.
• Employee training: Educating employees about phishing attacks and other security threats.

Pike Finance Breach and Phishing Scams: The Continued Threat Landscape

Beyond exchange hacks, the week also saw other security incidents, including Pike Finance suffering a second breach in just a few days. This underscores that vulnerabilities can persist even after initial attacks, requiring thorough remediation. Additionally, a trader's loss due to a phishing scam serves as a cautionary tale about the ever-present threat of social engineering. These instances highlight the diverse range of risks facing crypto users and the need for constant vigilance.

Crypto Market Overview: Bitcoin's Dip and Ethereum's Plunge

The string of bad news weighed heavily on the crypto market. While the total market cap remained relatively stable at $2.7 trillion, daily trading volume dropped significantly, indicating a decrease in investor confidence. Bitcoin, the king of crypto, experienced a dip below $88,000. The overall sentiment leaned towards fear, as reflected in the Fear and Greed Index.

Bitcoin's Correlation with the S&P 500

Analysts have noted a strong correlation between Bitcoin and the S&P 500, suggesting that the cryptocurrency is increasingly influenced by traditional financial markets. This correlation can be a double-edged sword. On one hand, it can attract institutional investors and legitimize Bitcoin as an asset class. On the other hand, it can make Bitcoin more susceptible to fluctuations in the broader economy.

The Regulatory Landscape: A Shake-Up in Progress

Amidst the hacking chaos, the regulatory environment continues to evolve. U.S. lawmakers and state officials have been actively engaged in discussions about digital asset regulation, with developments ranging from delayed disclosures and enforcement criticisms to landmark crypto-friendly legislation in California. The SEC also secured a $1.1 million fraud case, highlighting the ongoing efforts to combat illegal activity in the crypto space. These changes can be scary at first, but can allow for a more healthy industry in the future.

The Importance of Clear and Consistent Regulations

Clear and consistent regulations are essential for the long-term growth and stability of the crypto industry. These regulations should:

• Protect investors: Safeguard investors from fraud and manipulation.
• Promote innovation: Encourage innovation and responsible development.
• Provide clarity: Offer clear guidance on how crypto businesses can comply with the law.
• Foster international cooperation: Facilitate cross-border transactions and combat illicit activities.

Positive News: XRP Gains Traction

Despite the prevailing gloom, there were a few bright spots this week. XRP, the cryptocurrency associated with Ripple, experienced a surge in positive sentiment, driven in part by comments from Donald Trump. Furthermore, Brazil approved the first spot XRP ETF, opening up new avenues for investors to gain exposure to the cryptocurrency. These developments suggest that XRP is gaining wider acceptance and recognition within the crypto ecosystem.

The Long Shadow of Past Hacks: LastPass and Beyond

The ongoing repercussions of past hacks continue to haunt the crypto world. For instance, a cybercriminal recently stole over $5.3 million in exploits linked to LastPass, stemming from a compromise that occurred in 2025. This incident underscores the long-lasting damage that data breaches can inflict and the importance of proactive security measures to prevent future attacks.

Staying Safe in the Crypto Wild West: Practical Tips

In light of the recent events, it's more important than ever to prioritize security and protect your crypto assets. Here are some practical tips to help you stay safe in the crypto wild west:

1. Use strong, unique passwords: Avoid using the same password for multiple accounts and use a password manager to generate and store complex passwords.
2. Enable multi-factor authentication (MFA): Add an extra layer of security to your accounts by requiring a code from your phone or authenticator app in addition to your password.
3. Be wary of phishing scams: Never click on links or download attachments from unknown sources and always double-check the website address before entering your credentials.
4. Use a hardware wallet: Store your crypto assets offline in a hardware wallet for maximum security.
5. Diversify your holdings: Don't put all your eggs in one basket. Spread your crypto assets across multiple wallets and exchanges.
6. Stay informed: Keep up-to-date with the latest security threats and best practices.
7. Only invest what you can afford to lose: Cryptocurrency investments are inherently risky. Never invest more than you can afford to lose.

The Twitter Bitcoin Hack of 2025: A Recurring Nightmare?

Mentions of ""the great Twitter Bitcoin hack of 2025"" remind us that some security failures leave lasting scars on the community. It's a stark reminder that even well-established platforms can be vulnerable, and user vigilance is paramount. Learn from the past; don't repeat it.

Expert Opinions and Real-Time Updates

Staying informed about crypto security is a continuous process. Make sure to follow reputable news sources, security experts, and blockchain analytics firms to stay ahead of the curve. The Hacker News, for example, is a valuable resource for real-time updates, threat intelligence, and expert analysis on cybersecurity issues.

Ethereum Hacks Dominate: Is Ethereum At Risk?

The data doesn't lie: Code vulnerabilities facilitating Ethereum hacks are a significant and ongoing problem, causing tens of millions of dollars in losses this year alone. Reentrancy attacks are also a major vector for exploits. This doesn't necessarily mean Ethereum itself is fundamentally flawed, but it does highlight the need for developers to prioritize security and for users to exercise caution when interacting with decentralized applications (dApps).

The Rise in Crypto-Related Hacks and Scams

Unfortunately, the trend is clear: Crypto-related hacks and scams are on the rise. In 2025, these nefarious activities cost the industry over $3 billion, representing a significant increase from the previous year. This trend underscores the need for greater security awareness and proactive measures to protect against cyber threats.

Conclusion: Navigating the Choppy Waters of Crypto Security

This week in crypto has been a stark reminder of the risks and rewards that come with this emerging asset class. The Bybit hack, in particular, serves as a wake-up call to the entire industry, highlighting the need for enhanced security measures and greater vigilance. While the news may seem discouraging, it's important to remember that the crypto market is resilient and adaptable. By learning from past mistakes, staying informed, and taking proactive steps to protect our assets, we can navigate the choppy waters of crypto security and unlock the full potential of this transformative technology. Diversification, self-custody options, and staying updated on industry news are your best defense. The big crypto hacks serve as lessons. Remember to stay safe out there!