By Nermeen Nabil Khear 
The $1.5B Bybit hack isn’t just another crypto breach, it’s a wake-up call for the entire industry. Even cold wallets and multisig protection failed, exposing vulnerabilities that every exchange must address.
Key lessons for crypto exchanges :
1.) Multisig isn’t a perfect solution
Bybit used a multisig cold wallet, but attackers tricked signers into approving fake transactions. If key holders are compromised, multisig is useless.
2.) UI spoofing is a growing threat
Hackers manipulated the signing interface to make transactions appear legitimate. This method bypasses smart contract vulnerabilities and targets human error, making it much harder to detect.
3.) Cold wallets aren’t invincible
The attack happened while moving funds to a warm wallet. Many believe cold wallets are untouchable, but if transaction signing is manipulated, even offline storage isn’t safe.
4.) Speed matters in security response
Bybit processed 350K withdrawals in 10 hours, preventing a total meltdown. But better real-time monitoring could have stopped the attack before billions were lost.
5.) Lazarus Group strikes again
North Korea’s Lazarus Group is suspected of laundering funds through Solana and Binance Smart Chain, proving that hackers are using meme coins and fast-moving DeFi protocols to clean stolen assets.
What Needs to Change?
1️.) Zero-trust security for transactions
Every transaction should require cross-verification through independent systems, making it harder for spoofed interfaces to succeed.
2.) Hardware wallet improvements
Many hardware wallets don’t display full transaction details, forcing users to blind sign transactions. That needs to change.
3.) Real-time fraud detection
AI-powered monitoring systems should flag unusual activity instantly before funds are lost. Traditional finance has this—why doesn’t crypto?
4.) Regulated self-custody options
Exchanges are high-value targets because they hold billions in user funds. A move toward hybrid custody solutions, where users hold partial control, could prevent such massive losses.
Crypto security isn’t just about better tech, it’s about minimizing human risks, stopping UI manipulation, and ensuring transaction approvals are foolproof.
With crypto hacks getting more sophisticated, the industry needs to evolve faster than attackers. If cold wallets and multisig aren’t enough, what’s next?
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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