Crypto exchanges face security scrutiny

Crypto exchanges are increasingly falling short on security, despite significant trading volumes and growing regulatory pressure. Billions in assets were stolen in 2025, with major platforms experiencing large-scale breaches, indicating security is often treated as a marketing tactic rather than a core operational discipline. This 'security theater' prioritizes optics over robust risk management, leading to fragility that impacts users during stress events. True security requires verifiable proof-of-reserves, strict internal controls on fund movement, and rapid incident response, moving beyond superficial reassurances to build genuine trust.