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September 10, 2025CoinDesk logoCoinDesk

Crypto is Bleeding Billions a Year. Traditional Finance Is Watching.

Crypto is superior to traditional ￰0￱ SWIFT, which can take days to process payments, newer blockchain networks achieve finality in mere seconds and have throughput sufficient for real-world mass ￰1￱ Secretary Bessent projects stablecoins alone will hit $3.7 trillion by 2030. That’s the equivalent of Germany's ￰2￱ its technological edge, crypto has a major security problem. We're on track to lose around 4% of total value locked to hacks in ￰3￱ H1 alone, the industry lost over $2 ￰4￱ annualized, that points to over $4 billion flowing into hackers' wallets this ￰5￱ these losses were mirrored in traditional finance, the entire system would ￰6￱ crypto normalizes catastrophic loss rates while wondering why JPMorgan isn't moving their balance sheet ￰7￱ cost more than you think The real damage goes far beyond immediate theft.

It’s a burden on the whole ecosystem and it gets priced ￰8￱ protocols suffer a median 52% token price decline over six months, with the majority still showing price suppression half a year ￰9￱ an industry aspiring to manage the world's wealth, this is an existential ￰10￱ traditional financial market could survive with annual theft rates approaching 4%. To unlock the institutional flood gates and bring the next trillion on-chain, we must drive hack rates below 1% – ￰11￱ North Koreans are stalking your development team The moment a crypto project announces funding, North Korean hackers begin social engineering attacks on development teams. They've gotten scary good at ￰12￱ at the Radiant Capital hack – $50 million gone because attackers compromised devices through malware that infected transaction ￰13￱ most painful part of all of this is that we have the tools to stop this, and they keep getting better.

AI-driven monitoring systems can spot and resolve critical security issues before code is deployed, catching vulnerabilities that humans ￰14￱ services connect projects with elite Web3 security researchers to deliver tailored security ￰15￱ have the tools, yet projects still ship with single pre-launch audits and ￰16￱ set rewards to identify vulnerabilities at 1% of funds at risk when they should be at 10%. Moreover, they skip monitoring because it seems expensive until they're explaining to users why $50 million ￰17￱ to make crypto ready for primetime Reducing hack rates below 1% is an engineering challenge we already know how to ￰18￱ must embrace comprehensive security stacks: continuous monitoring, meaningfully priced security rewards to encourage security researchers, formal verification for critical components and AI-powered threat ￰19￱ cost is trivial compared to the potential ￰20￱ and institutions see these hack ￰21￱ run the ￰22￱ they conclude – correctly – that crypto isn't ready for prime ￰23￱ survived every market crash with no systemic bad ￰24￱ solved the technical ￰25￱ can’t be an ￰26￱ we adopt the security tools we've already built, or we watch institutional capital deploy elsewhere while hackers fund their operations with our losses.

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