Crypto hacks have surged in early 2024, with a record-breaking theft hitting Bybit, one of the world’s major cryptocurrency exchanges. In the first quarter alone, there were 197 hacking incidents—six more than the previous quarter. A large portion of these attacks, about 98, targeted the Ethereum blockchain, a popular platform for decentralized finance (DeFi) applications.

The biggest hit came in February when hackers stole $1.45 billion in Ethereum from Bybit’s digital wallet. This event is now considered the largest crypto theft in history. The breach has triggered alarm bells across the crypto industry, putting a spotlight on how vulnerable centralized crypto exchanges still are. Cybersecurity experts and regulators are now pushing for stronger protections to prevent future attacks.

Another major incident involved Singapore-based exchange Phemex, where cybercriminals managed to steal $71 million. Security analysts have noted that hackers are getting smarter, using tools like artificial intelligence (AI) and advanced social engineering tactics to break through defenses more easily.

This rise in crypto-related cybercrime comes during a time of big changes in the U.S. crypto landscape. Under President Trump’s administration, some lawsuits against crypto exchanges have been dropped, and there’s been talk about creating a national bitcoin reserve. These moves are intended to stabilize and clarify the legal framework around digital assets. However, they haven’t done much to stop the immediate threat of hackers.

Following the Bybit hack, Bitcoin’s price dropped below $90,000 for the first time in months—marking a sudden shift after a period of strong growth fueled by Trump’s pro-crypto stance.

At the same time, new tariffs introduced by the White House could shake up the crypto industry even further. If key hardware components like semiconductors become more expensive due to trade restrictions, crypto miners and blockchain developers may face serious supply chain disruptions.

Despite these challenges, some experts believe that blockchain’s decentralized nature could help the industry adapt. Innovations in global transactions and cross-border payments might soften the blow from tariffs.

In the short term, crypto investors should expect more price swings and market uncertainty. But looking ahead, cryptocurrencies still hold strong potential as digital stores of value and reliable tools for moving money across borders.