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Coin Telegraph
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Stop pretending technical and human vulnerabilities are separate things
- Crypto founders make big promises but often fail to address security vulnerabilities, leading to hacks and thefts like the $1.46 billion stolen from Bybit by the North Korean Lazarus Group in 2025.
- Security flaws in crypto systems allow for significant financial losses and the laundering of stolen funds, with inadequate protection measures in place, as seen in the case of THORChain.
- Reports reveal significant losses due to social engineering attacks, such as Coinbase users losing over $300 million annually, emphasizing the failure to address security vulnerabilities and protect users.
- The crypto industry faces serious security concerns, with social engineering attacks driving substantial financial losses, highlighting a fundamental problem of prioritizing marketing over security measures.
- Even industry leaders like Ripple co-founder Chris Larsen and DeFiance Capital founder Arthur_0x have fallen victim to basic attacks, indicating that even experts are not immune to vulnerabilities.
- Blockchain transactions' irreversible nature demands robust safeguards to prevent thefts and mistakes, emphasizing the need for systems that prioritize user protection over theoretical perfection.
- The crypto industry must shift focus toward building genuine protections to mitigate financial risks for users, or face regulatory interventions that could threaten the industry's operations.
- Failure to create secure systems may result in regulators imposing stricter measures, jeopardizing the supposed financial innovation claimed by crypto builders.
- The urgency lies in developing technically advanced systems that prioritize user security and protect against financial loss, to uphold the credibility of the crypto industry.
- It is crucial for crypto builders to address security vulnerabilities and establish reliable protections for users to avoid regulatory scrutiny and maintain the integrity of the industry.
- The choice facing crypto builders is between enhancing security measures to match financial innovation claims or risking regulatory intervention that could restructure the industry's operations.
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