Abstract

• In 2025, Bybit exchange suffered the largest hack in crypto history, with losses exceeding $1.4 billion. This attack triggered severe market turbulence, exposed security vulnerabilities in centralized exchanges, and accelerated the trend toward decentralization.

• While DeFi projects face frequent attacks, centralized exchanges (CEX) suffer the largest losses per incident. Money laundering methods have grown increasingly sophisticated, with cross-chain transfers emerging as the primary method.

• Hacking incidents consistently trigger price fluctuations in mainstream cryptocurrencies. The Mt. Gox incident caused Bitcoin to plunge 11.72% in a single day, while the Bybit attack led to BTC and ETH dropping 4.44% and 7.84% respectively.

• Following hacks, market sentiment deteriorates and affected project tokens collapse. After the Ronin attack, its token RON fell 20% within 24 hours.

• These attacks spark severe market volatility and trigger panic selling. Bybit saw $5.7 billion in net outflows within two days of the incident, while Ronin Bridge’s ecosystem TVL dropped 75.29% within two months. Trust in CEXs has eroded, pushing users toward decentralized wallets and DEXs.

• The attacks create ecosystem-wide ripple effects: The Bybit incident drove USDe down to $0.96 through panic selling, while Chainlink oracle price discrepancies triggered $22 million in Aave liquidations. The Ronin Bridge attack led to capital flight that significantly shrank its DeFi ecosystem.

• The industry must build a three-pillar security system combining “Technology- Regulation-Users”. This includes technical upgrades (MPC wallets, zero-knowledge proofs), regulatory compliance (KYC/AML), operational transparency (proof of reserves, insurance), user education (security awareness, bug bounties), and ecosystem collaboration (cross-chain security alliance, open-source technology).

• Major hacks—from Mt. Gox to Poly Network, Ronin Bridge, and Bybit—have driven industry evolution. The crypto sector grows stronger through these challenges, working toward a secure, transparent, and sustainable future through collaborative efforts in technology, regulation, and community.
  
  

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