The crypto industry has taken heavy hits in 2025. In just the first few months, at least three major
exchanges (two CEX and one DEX) were hacked or breached. According to Cointelegraph, total
losses from crypto hacks in Q1 2025 reached $1.63 billion.
In this article, the BitHide team breaks down what happened and shares practical tips on how crypto
businesses can protect their assets and infrastructure
Bybit, Coinbase, Cetus: What Went Wrong
Bybit
In February, Bybit lost over $1.5 billion due to an attack on its cold wallet. Hackers from North Korea
exploited a flaw in key management. The breach raised serious concerns about the safety of offline
storage.
Coinbase
In May, Coinbase reported a data leak affecting 69,000 users. It wasn’t a tech failure. Instead,
attackers bribed support staff and used stolen data for phishing. Clients were tricked into sending
funds. Losses were estimated between $200,000-$400,000.
Cetus
Cetus, a DeFi exchange, was hacked through price oracle manipulation (oracles feed market prices
into blockchain). Attackers changed the value of tokens, bought low, sold high, and drained $220
million from the protocol. The incident highlighted how vulnerable DeFi platforms remain to data
manipulation and how badly they need built-in protection.
How Businesses Can Protect Crypto and Data
Attacks are getting more sophisticated, so it’s crucial for businesses to think about how they protect
their assets and data. Here are the key steps to help secure your infrastructure.
Use a Self-Hosted Wallet
When you control your private keys, you control your funds. Self-hosted solutions reduce the risk of
freezes or leaks from third parties, and the software runs on your own infrastructure.
It’s also important for your crypto payment solution to include extra layers of protection, such as 512-
bit encryption of the private key (which is currently considered unbreakable), 2FA, and device
fingerprinting for added security. That’s exactly what the BitHide crypto gateway without KYC offers.
Check Crypto Risk with AML Tools
In 2024, $1.3 billion was frozen by Circle and Tether. According to Bitrace, one in every 20 stablecoin
transactions is linked to suspicious addresses. The risk of accepting tainted crypto, and exposing your
clean funds to potential freezes, keeps growing every year
Before accepting crypto, check where it came from. Dirty funds can get frozen, especially on
centralized exchanges. The easiest way to stay safe is to use a wallet with built-in AML checks.
Avoid Using One Address for Everything
Spread funds across multiple addresses. Avoid using a single central address to collect funds from
clients. Fraudsters can use it to track your turnover and potentially deanonymize your business.
Different Access Levels
Assign different access levels to your team members. Not everyone needs permission to make
payments or run AML checks. As the Coinbase breach showed, the human factor can be a real weak
point in your security setup.
Protect Your IP Address and Infrastructure
Hackers can trace your wallet activity through your server’s IP address, which is always ends up on
the nodes and stored there. Once fraudsters have this data, it’s easier to locate your server or even
target asset owners. Use crypto payment gateways with built-in IP masking, such as BitHide, to hide
your real infrastructure.
Conclusion
The 2025 breaches made one thing clear: even the biggest names in crypto aren’t immune to leaks,
attacks, or manipulation. Some lost billions. Others learned from it. If you’re in crypto, don’t leave
security to chance.
Build your own secured crypto infrastructure with private key encryption, IP masking, role-based
access, and built-in AML checks. BitHide, a confidential crypto wallet for business, can help with all of
these tasks.
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