Exchange Hacks Surge as Attackers Target Crypto Platforms’ Weak Spots

Exchange hacks reached a new level of sophistication this year when a major South Korean crypto platform lost $35 million in just 15 minutes.

Attackers compromised the exchange’s hot wallet system and executed hundreds of transactions across multiple tokens, including USDC, SOL, and BONK, before security teams noticed the breach.

According to the latest Chainalysis report, the platform managed to freeze $23 million worth of LAYER tokens, but the remaining funds disappeared permanently.

This incident reflects a troubling pattern across the crypto industry. Centralized exchanges and custodians are becoming prime targets for hackers who prefer attacking platforms over individual users.

Recent breaches at Bybit, BTCTurk, SwissBorg, and Phemex follow the same playbook: find one weak point in the system and exploit it for millions before anyone can respond.

Why Exchange Hacks Are Getting Worse

The problem isn’t getting better because exchanges now handle incredibly complex operations. They manage withdrawals across multiple blockchains, often in cloud environments with numerous potential failure points.

Despite this complexity, many platforms still rely on basic security measures that prove inadequate when tested by determined attackers.

Threat groups like Lazarus have spent years studying how exchanges operate. They use various tactics, including social engineering, malware, and insider threats, to find that single weakness.

The attacks on these platforms share common traits: wallet balances suddenly drop to zero, massive spikes in high-value outflows occur within minutes, and hundreds of transactions execute across different tokens simultaneously.

What Exchanges Can Do to Protect Assets

Real-time detection systems are now essential for any platform handling customer funds. These systems monitor for unusual patterns like sudden wallet draining, burst activity in withdrawal requests, and transfers to unknown addresses.

When these signals appear, automated responses can pause withdrawals, route funds to cold storage, or block suspicious transactions before they reach the blockchain.