Your title is kind of click-bait, as you're aware. For all crypto users, this hack simply isn't a problem. I don't think Bybit wallets actually classify as cold wallets since they clearly touch the internet, and since smart contracts interact with the cold wallet, and even worse, its all automated. This almost makes me scared of what the custody is like for these ETFs at Coinbase. When I think of a cold wallet setup, for someone like MSTR, I would think its like a 5 of 7 multisig, and these guys have to pass around the PSBT file that gets signatures added until they reach the minimum number of signers. The idea that software controls this "cold" wallet is I think the exact opposite of what a cold wallet is supposed to be. Edit: Ok, reading it again, it appears that its dumb people who did actually sign off on this. But if I'm signing off on a cold wallet transfer, am I not going to ask someone above me why? If I see a $5k withdraw from the family account, I'm gonna check with the wife and ask what's up.
The lack of security on crypto exchanges and platforms is amazing. Nearly all can be easily hacked in common hacker boundary scan, penetration, and credential attacks that mainstream financial institutions are protected against (due to proper security testing of their platforms). Nearly ever week there is a new story about huge amounts being stolen from a crypto exchange.
Enjoy the endless list of hacked Crypto Exchanges and Fraud: https://www.web3isgoinggreat.com/ https://www.elitetrader.com/et/threads/more-crypto-fraud.376872/
Before I even click on that, is it going to show me a hacking "Every week" like you just said or was that a bull manure comment? And also, if hacking is as easy as you say it is, then I think 1 hacking a week is remarkable...
Let's just walk through a portion of the reported hacks since the beginning of the year. NoOnes hacked for almost $8 million January 1, 2025 https://www.web3isgoinggreat.com/?id=noones-hacked-for-almost-8-million Orange Finance hacked January 8, 2025 https://www.web3isgoinggreat.com/?id=orange-finance-hack UniLend exploited for almost $200,000 January 12, 2025 https://www.web3isgoinggreat.com/?id=unilend-exploit The Idols NFT loses $324,000 to exploit January 14, 2025 https://www.web3isgoinggreat.com/?id=idols-nft-exploit Phemex exchange hacked for at least $70 million January 23, 2025 https://www.web3isgoinggreat.com/?id=phemex-hack "On-chain Microstrategy" clone Ether Strategy loses over $500,000 of ETH January 30, 2025 https://www.web3isgoinggreat.com/?id=ether-strategy-destroys-over-500000-of-eth BNB-based pump.fun competitor Four.Meme loses $183,000 to attack February 11, 2025 https://www.web3isgoinggreat.com/?id=fourmeme-hack zkLend hacked for around $9.5 million February 12, 2025 https://www.web3isgoinggreat.com/?id=zklend-hack Over $1.4 billion taken from Bybit crypto exchange February 21, 2025 https://www.web3isgoinggreat.com/?id=bybit-hack
Those aren't all hackings. A personal "attack" would be when 1 individual is targeted, usually by identity fraud, which anyone including me and you can do. So yes you would be right about that, but to hack an entire crypto exchange would have to be done by a computer expert. You made it sound like an exchange gets hacked every week.
There are many more Crypto Exchange hacks reported since the beginning of the year. This is merely a partial list. By network/server security standards all the items are a hack of crypto exchange infrastructure whether they target one account or multiple accounts. All of these reported issues are due to poor security practices of the crypto exchanges -- issues you don't see with mainstream financial institutions. Will agree that the list shows that about one hack of an exchange (individual account or multiple account) occurs about every week?