CEXs Urged to Strengthen Crisis Management as Crypto Hacks Surpass $2.17 Billion in 2025

Centralized cryptocurrency exchanges (CEXs) continue to face significant cybersecurity risks despite ongoing improvements in digital security measures. A single data breach can lead to substantial financial losses, user distrust, and reputational harm. According to Chainalysis, over $2.17 billion has been stolen from cryptocurrency services in 2025 alone, already surpassing the total losses recorded for the entire year of 2024 by mid-year [1]. This rapid increase in stolen value underscores the urgency for CEXs to implement robust crisis management strategies that go beyond technical defenses [1].

Cointelegraph has analyzed recent CEX breaches and compiled lessons into a detailed guidebook. The report highlights that many CEXs fail to manage the human and reputational elements of a crisis, often exacerbating the situation with delayed or unclear communication [1]. Dan Kuzner, senior consulting manager at Formula, emphasizes that while better defenses are essential, the reputational impact of a breach can be even more damaging than the hack itself [1]. He notes that a clear and timely response can make a significant difference in mitigating long-term damage [1].

A practical four-part cybersecurity plan is recommended for CEXs to prepare for and respond to cyber incidents:

1. help identify gaps in current processes and ensure clarity on roles and escalation steps.

2. through tabletop exercises builds internal confidence and uncovers weaknesses before real incidents occur.

3. requires a central crisis room to manage communication and coordinate with legal, compliance, PR, and customer support teams.

4. are essential to rebuild trust through transparency and timely updates on recovery efforts.

Jenny Ryan, senior marketing specialist at Formula, highlights that clear crisis communication protects not only the exchange but also its users and the broader ecosystem [1]. Crisis-ready exchanges treat communication as a strategic function and build simple playbooks to guide their teams. These exchanges also recognize the expectations of regulators and the public for professionalism and transparency [1].

According to Kate Zems, head of Formula, exchanges that prepare for cyber incidents are more likely to survive a breach and emerge stronger [1]. Those that neglect crisis planning often fail to recover fully. The report concludes that strong crisis management begins with planning and training, treating crisis response as a core business function rather than an afterthought [1].

Key takeaways include the importance of tested plans, cross-functional teamwork, simulation exercises, and communication as a risk mitigation tool. The cost of inaction is greater than the cost of preparation, with time invested in planning and training being a small price to pay compared to the damage caused by a poorly managed breach [1].

Readers are advised to map out current response flows and identify gaps, followed by scheduling simulations to enhance readiness. While Cointelegraph does not endorse the content or products discussed, it provides the information as part of its sponsored article [1].

Source:

[1] Cointelegraph – Crisis management for CEX during a cybersecurity threat

https://cointelegraph.com/news/crisis-management-for-cex-during-a-cybersecurity-threat