Big trouble can happen when cryptocurrency exchanges get hacked! Imagine someone breaking into a bank – it's similar. Hackers steal money (cryptocurrency), and people panic, trying to take out their money all at once. This can cause a 'liquidity crisis', meaning the exchange doesn't have enough cash to pay everyone back.
- Hackers steal crypto from exchanges, causing fear.
- People rush to withdraw their money.
- Exchanges might freeze withdrawals to stop more losses.
- Exchanges work with police and other companies to find and recover the stolen crypto.
| Event | Amount Stolen | Outcome |
|---|---|---|
| Bybit 2025 Hack | $1.5 billion | Largest crypto heist ever; some funds traced. |
| KuCoin 2020 Hack | ~$285 million | Most funds recovered; users compensated. |
| Binance 2019 Hack | $40 million | Users fully reimbursed from reserves. |
