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Cryptocurrency exchanges are the biggest targets for hackers, as they house billions of dollars in assets held by thousands of people. Looking back at crypto history, some major hacking incidents have rocked the entire market and changed the definition of security.

1. Some of the biggest historical hacking incidents

A few hacking incidents in the history of the crypto world still terrify everyone. This was the first and biggest shock in crypto history. This Japanese exchange controlled 70% of the world's Bitcoin transactions at the time. In 2014, hackers stole about 850,000 Bitcoins from their system. As a result, the exchange went bankrupt and the price of Bitcoin dropped dramatically. About $530 million worth of NEM tokens were stolen from the Japanese exchange Coincheck. The hackers removed these funds from the exchange's 'hot wallet' (wallet connected to the Internet). Even the world's largest exchange Binance could not escape hacking. Hackers stole about 7,000 Bitcoins ($40 million at the time) using phishing and malware. However, Binance returned all of its customers’ money from its Special Insurance Fund (SAFU). About $400 million mysteriously disappeared from FTX’s wallets shortly after it went bankrupt. Many have called this an insider job or hacking.

2. Why do exchanges get hacked?

Hackers typically exploit three main vulnerabilities. If exchanges keep all their funds in wallets connected to the internet, they become easy targets for hackers. If there is a flaw in the exchange’s coding or smart contracts, hackers can exploit it to gain access to the system. Taking control of the exchange’s computers by sending phishing emails or luring exchange employees.

3. Modern security measures

In the current era of 2026, major exchanges now use military-grade security. Currently, reputable exchanges keep 95% to 98% of their customers' funds in offline or cold wallets. These wallets are not connected to the internet, so it is impossible for hackers to touch them. Now, to transfer funds, only one password does not work. Separate approvals from multiple high-ranking officials or systems are required. This is called multi-signature security. Strict security levels like Google Authenticator or Face-ID have been made mandatory for users. As a result, even if a hacker gets someone's password, they cannot enter the account. Many exchanges now create an insurance fund with a portion of their profits. If there is a hacking, the customers' money is returned from this fund. Currently, exchanges provide proof through third-party auditors that they have the same amount of assets as their customers. This ensures transparency.

4. What you should do as a customer

No matter how secure an exchange is, your own caution is paramount. Exchanges are for trading only. Large investments should always be kept in your personal hardware wallet. Keep your wallet addresses 'whitelisted' on the exchange, so that money cannot be sent to an unknown address even if you want. Use a different and very complex password for each exchange.

Conclusion

Crypto exchange hacking has taught us that— "complete security is an illusion." However, thanks to cold storage and modern audit systems, today's major exchanges are much safer than they used to be. Still, it's important to remember the adage: "Not your keys, not your coins." Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.

Me behind the camera & keyboard

I’ve always loved sharing my passions with you — from crypto and movie reviews to photography, storytelling, and blogging. Now, continuing that creative journey, I’ve stepped into a brand-new world — Gaming ! 🎮 | 🎥 On my YouTube channel Bokhtiar The Survivor — I’m consistently working to bring you the raw thrill of my gaming experiences — the emotions, the excitement, and those unforgettable moments that make every game feel alive.