Crisis management for CEX during a cybersecurity threat

Cybersecurity in crypto is improving, but new threats continue to evolve. Despite stronger information security systems, centralized cryptocurrency exchanges (CEXs) remain vulnerable to attacks. A single data breach can result in financial loss, user attrition and long-term damage to reputation.

According to Chainalysis, over $2.17 billion has already been stolen from cryptocurrency services in 2025, surpassing the total losses for all of 2024 by mid-year.

A recent report highlights how fast the cumulative value stolen in 2025 is climbing. Source: ChainalysisWithout a clear plan, incidents like these can trigger public panic and regulatory pressure, often more damaging than the hack itself.

For real-world context, Cointelegraph analyzed recent CEX breaches and compiled the lessons into a detailed guidebook. It covers what failed, what worked and how teams restored stability and trust.

Why crisis management for CEX should go beyond technical fixes

Too often, crisis planning focuses only on IT systems and cyber defenses. But managing an exchange hack also means managing people. Users, regulators, employees and the media all expect fast, clear communication.

This is where many CEXs fall short. Delayed responses or confusing statements often worsen the situation. Instead, exchanges need an approach that combines regulatory communication, transparency and operational clarity.

Dan Kuzner, Formula’s senior consulting manager, explains it like this:

“Even with better defenses, the potential cumulative losses remain staggering. The reputational impact can be even more severe. A clear and timely reaction can make all the difference.”

In other words, what you say and how you say it matter as much as what you do.

A four-part cybersecurity plan for crypto exchange hacks

Here’s a practical structure that CEXs can use to prepare for and respond to cybersecurity incidents.

1. Pre-crisis audits and risk assessments

Start by reviewing current processes.

• Who handles communication in a crisis?
• Are there clear escalation steps?
• Can your team identify and prioritize key stakeholders?

A risk assessment helps you spot gaps early and prevent confusion when an incident hits.

2. Exchange crisis simulation

Run tabletop exercises to test your plan. Simulate a real hack and walk your team through every step of the response. These exercises highlight weaknesses and build internal confidence so you can act quickly under pressure.

3. Real-time incident support

When a breach happens, the first hours are critical. Create a central crisis room to manage all outbound messaging. Draft user statements fast, coordinate with legal and compliance teams and align with PR and customer support. Avoid speculation and focus on what you know.

4. Post-breach communication plan

After the immediate threat is resolved, recovery begins. Keep users informed about updates and security improvements. Publish a full post-mortem if appropriate. Show transparency after crypto hacks and use the opportunity to rebuild crypto user trust.

Jenny Ryan, Formula’s senior marketing specialist, emphasizes the value of preparation:

“Clear crisis communication doesn’t just protect exchanges. It protects users and helps the whole ecosystem recover and mature.”

Crisis management habits that set top exchanges apart

Crisis-ready exchanges take action before something goes wrong. They build simple playbooks, train teams regularly and treat communication as a strategic function, not as an afterthought.

They also know that regulators and the public expect professionalism. Handling a data breach poorly can attract penalties, damage brand equity and drive users to competitors.

Kate Zems, head of Formula, puts it simply:

“Exchanges that prepare are more likely to survive a hack and come out stronger. The ones that don’t prepare often don’t recover.”

Takeaways for teams managing data breaches in Web3

Strong crisis management for CEX platforms doesn’t start when a breach happens. It starts now, with planning, training and clear communication. The exchanges that recover best are the ones that take action early and treat crisis planning as a core business function, not just a technical add-on.

Here are a few key lessons for teams looking to improve their risk posture and incident response:

• You don’t need a perfect plan. You need a tested one: Even a simple framework, rehearsed regularly, can help your team move faster and make better decisions under pressure.
• Treat crisis response as a company-wide effort: Security, legal, comms, leadership and customer support all need to work together. Everyone should know their role before anything goes wrong.
• Run simulations to uncover gaps: Tabletop exercises help you catch miscommunications and delays in a low-stakes environment, before they turn into real-world problems.
• Use communication as a risk mitigation tool: Clear, honest updates help preserve crypto user trust and show regulatory compliance in action. Silence or vague statements often make things worse.
• The cost of inaction is higher than the cost of preparation: Time spent now on planning and training is a small investment compared to the damage of a mismanaged breach.

To get started, map out your current response flow and identify gaps. Then, schedule a simulation with your team.

Need help taking those first steps?

Working with a team that’s already guided exchanges through high-stakes incidents can save you time, stress and costly mistakes. With the right support, you’ll be better prepared to act fast, communicate clearly, and protect your users when it matters most.

Learn more at Formula

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain in this sponsored article, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.

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