Hack

One morning in 2017, I stared at my computer screen in disbelief. I rubbed my eyes, glanced at the clock ticking on the wall—eight minutes past eight in the morning. I rubbed my eyes again and looked back at the screen. My wallet balance was zero!

I clicked on my Etherscan bookmark and watched in horror as my Ether and ERC20 tokens were being transferred. It was like a robbery unfolding in slow motion. Instinctively, I reached for my phone but froze. Who was I going to call? A quick glance at the screen showed the transaction had been initiated 55 minutes ago and was still being confirmed. My tokens were moving to an account ominously named "Fake_phishing," and I was powerless to stop it. A crypto robbery in progress!

But I had to try. My DN tokens were still intact. I attempted to transfer them to my Exodus wallet, only to realize my Ether was gone—no gas to fuel the transaction. My TL tokens, painstakingly acquired through a late-night bid on Etherdelta, were also missing.

Then it hit me. A week earlier, I’d installed a suspicious app on my Android phone while in my car, masquerading as an Etherdelta app. It prompted me for my Ethereum address and private key. I hesitated but eventually complied. The app displayed a "comming soon" message—spelled with a double ‘m.’ A glaring red flag I ignored. I felt foolish for falling for the phishing scam and had vowed to move my tokens to a secure wallet. I never got around to it in time.

This scenario is all too familiar to thousands, if not millions, of early crypto adopters and enthusiasts worldwide. Fast forward to today, and the cryptocurrency industry continues to grapple with sophisticated hacks and phishing attacks, with high-profile incidents like the FTX collapse amplifying the urgency for change. So, what’s next for the crypto space, and how can we protect ourselves from these digital heists?

The FTX Collapse and Beyond: A Wake-Up Call

In November 2022, FTX, once the third-largest cryptocurrency exchange valued at $32 billion, imploded in a matter of days, shaking the industry to its core. A CoinDesk report revealed that Alameda Research, a trading firm run by FTX founder Sam Bankman-Fried, held most of its assets in speculative tokens like FTT, sparking a liquidity crisis. Customers withdrew funds en masse, and FTX filed for bankruptcy on November 11, 2022. Hours later, hackers stole approximately $477 million in cryptoassets from FTX’s wallets, with estimates ranging from $415 million to $663 million across various reports. The exchange confirmed the breach on its Telegram channel, warning users that its apps were compromised and urging them to avoid the website to prevent malware infections.

The FTX hack exposed glaring security failures: private keys stored in unencrypted files, assets left in insecure hot wallets, and inadequate multifactor authentication. Some speculate it was an inside job, given the timing and access required, while others point to external hackers exploiting the chaos of the bankruptcy. Blockchain analysis by firms like Elliptic and TRM Labs tracked the stolen funds as they were swapped for Ether and Bitcoin via decentralized exchanges (DEXs) like Uniswap and laundered through cross-chain bridges like THORSwap.

FTX wasn’t an isolated incident. In 2025, the crypto industry continues to face relentless attacks. On February 21, 2025, Bybit, a Dubai-based exchange, lost $1.46 billion due to malware that tricked the platform into approving unauthorized transactions, dwarfing previous hacks like Poly Network’s $611 million theft in 2021. In January 2025, AdsPower suffered a $4.7 million breach when attackers replaced a legitimate browser plugin with a malicious version, stealing mnemonic phrases and private keys from unsuspecting users. Phishing attacks also remain rampant, with a reported $16 million stolen in 2025 through fake dApps and wallet drainers.

Posts on X highlight the growing sophistication of these attacks. In April 2025, hackers used bogus desktop downloads mimicking trusted platforms like Binance and TradingView to target crypto users, while over 330,000 wallets were compromised in 2024 alone, resulting in losses exceeding $500 million. These incidents underscore the persistent vulnerabilities in centralized exchanges, DeFi protocols, and individual wallets.

The Rising Threat of Phishing and Hacks
Phishing remains a top attack vector, as my 2017 experience painfully demonstrated. In 2023, a DeFi whale lost $3.4 million in GMX tokens to a phishing attack, and the trend continues with hackers deploying fake websites, malicious dApps, and deepfakes to trick users into revealing private keys or seed phrases. Other common methods include:

Wallet Compromises: Exploiting backdoors or poor operational security, as seen in the Bybit breach.

Smart Contract Exploits: Bugs in contract logic, like the $12.9 million MIM Spell hack in 2025, allow hackers to drain funds.

Private Key Theft: Insider threats or malware, such as the Phemex hack attributed to the Lazarus Group, resulted in $71.7 million in losses.

In 2023, hackers stole $1.7 billion across 231 incidents, a 54.3% drop from 2022’s $3.8 billion, largely due to fewer DeFi hacks.

However, the number of attacks rose, with North Korea-linked groups like Lazarus stealing over $1 billion. These statistics highlight the evolving threat landscape, where cybercriminals adapt to improved security measures with increasingly creative tactics.

The Case for Crypto Rangers

If the crypto industry doesn’t take proactive steps to police itself, regulators will impose their own rules, potentially stifling innovation. The FTX debacle, coupled with ongoing hacks, has eroded public trust, with investors wary of centralized exchanges and DeFi platforms alike. The industry needs a rapid response unit—call them Crypto Rangers—to address hacks and phishing attacks in real time.

What would Crypto Rangers do?

Incident Response: A dedicated team to assist users during active hacks, providing guidance on securing remaining assets and reporting to authorities. For example, in the FTX hack, quick action by staff secured
$300 million before the thief could access it.

Education and Prevention: Raise awareness about phishing scams, secure wallet practices, and the dangers of unverified apps. Initiatives could include real-time alerts about malicious dApps or fake websites, similar to Bolster’s platform for detecting phishing campaigns.

Collaboration with Exchanges: Work with platforms to freeze stolen funds, as Tether did with $31 million in the FTX hack, and ensure compliance with anti-money laundering protocols.

Blockchain Analysis: Partner with firms like Elliptic and Chainalysis to trace stolen funds and identify culprits, increasing the chances of recovery.

Regulatory Advocacy: Bridge the gap between the crypto industry and regulators to develop sensible frameworks that protect users without stifling growth, as seen in the UK’s proposed FCA oversight.

A Call to Action
My 2017 phishing ordeal was a personal wake-up call, but the FTX collapse and recent hacks like Bybit and AdsPower are a clarion call for the entire industry. The crypto space thrives on decentralization and innovation, but without robust security and rapid response mechanisms, it risks alienating users and inviting heavy-handed regulation. The big players—exchanges, DeFi protocols, and wallet providers—must unite to form Crypto Rangers, a force to combat hacks and restore trust.

Until then, individual users must remain vigilant:
Use hardware wallets for significant holdings.

Enable two-factor authentication and unique passwords.

Verify apps and websites before sharing sensitive information.

Stay informed about emerging threats via trusted sources.

The crypto robbery I witnessed in 2017 is a story repeated daily in 2025. It’s time for the industry to fight back. Who’s ready to join the Crypto Rangers?
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