Is Your Crypto Safe? Expert Advice After the $1.5 Billion Bybit Hack. Speaking to Techopedia, Former British Police Detective Darren Stanton shares key steps to protect digital assets, including secure storage, due diligence, and verifying platform legitimacy.
The cryptocurrency market has been shaken by the largest crypto heist in history, with $1.5 billion stolen from digital asset exchange Bybit. The cyberattack, attributed to North Korea’s Lazarus Group, has reignited concerns about the security of digital assets and the risks investors face in an increasingly sophisticated threat landscape.
To address these concerns, former British Police Detective Darren Stanton has shared key advice on how individuals can protect their cryptocurrency holdings and minimise the risk of fraud. Speaking exclusively to Techopedia, he outlines practical steps investors should take to safeguard their assets in an era where digital crimes are becoming more advanced.
The Bybit Hack: What Happened?
The $1.5 billion theft from Bybit has sent shockwaves through the cryptocurrency industry. Blockchain analytics firm Arkham Intelligence has linked the attack to the Lazarus Group, a notorious North Korean hacking organisation known for executing high-profile cybercrimes.
Despite the significant loss, Bybit’s CEO assured users on social media platform X that the exchange remains solvent and that all client assets are backed 1:1. However, the scale of the attack has prompted renewed discussions on the security of cryptocurrency exchanges and the measures investors should take to protect their funds.
Criminals No Longer Need to Walk into Banks
Highlighting the shift in financial crime, Darren Stanton explains that traditional bank robberies have been replaced by cyber heists.
“Thinking of old-school bank robberies and jewel heists, we envision masked men with weapons stealing money. But with advances in technology, robberies and scams have become so rife as criminals don’t need to walk into banks with shotguns anymore. It’s more simple for them and much more sophisticated,” said Darren Stanton.
This shift underscores the need for cryptocurrency holders to take security precautions and remain vigilant in the face of evolving digital threats.
How to Protect Your Crypto Investments
Former British Police Detective Darren Stanton outlines several key steps that investors should follow to reduce their exposure to fraud and cyberattacks.
1. Re-evaluate Storage Methods
Cryptocurrency holders are advised to reassess where they store their digital assets. Exchanges, while convenient, are not always the safest option.
“If you hold crypto, it may be worth taking it out of an exchange to make it safe and redo your due diligence on your portfolio to minimise your risks,” said Darren Stanto
Cold wallets—offline storage solutions—are considered a more secure alternative to storing funds on exchanges.
2. Conduct Proper Due Diligence
“There are three basic due diligence checks individuals should do. First, word of mouth. Second, check reviews of providers. And finally, what we call in law enforcement, OSINT – or open sources of intelligence. This is intelligence or data that can be accessed by anyone,” said Darren Stanto.
Before investing in a cryptocurrency platform or service, Stanton advises carrying out three fundamental checks:
- Word of mouth – Seek recommendations from trusted sources.
- Reviews of providers – Assess online reviews and feedback from other investors.
- Open Source Intelligence (OSINT) – Use publicly available information to verify legitimacy.
By following these steps, investors can reduce the likelihood of falling victim to fraudulent schemes.
3. Beware of Scams Disguised as Legitimate Investments
Scammers use deception to make fraudulent schemes appear credible. Darren Stanto warns investors to remain cautious:
“As with all confidence crimes, it’s all about convincing the mark that the scam is legitimate. If you are investing in something and are not sure, then avoid it.”
Regulatory protections can offer some security, particularly in the UK, where the Financial Conduct Authority (FCA) oversees financial products.
Darren added, “In the UK, anything not regulated by the Financial Conduct Authority will be riskier and could be a cause for concern for some investors. For example, the FCA can cover losses of up to £85,000. Unregulated products won’t offer this protection.”
4. Verify Platform Legitimacy
Fraudulent platforms often imitate legitimate businesses. Stanton stresses the importance of verifying the authenticity of platforms before engaging in transactions.
“Trust your gut instinct. If things seem too good to be true, they probably are. Search social media. Make sure the platform you’re on is legitimate. Check if the regulation a product says it is covered by is genuine,” said Darren Stanto
As scams increase in frequency, investors must adopt a more diligent and cautious approach when dealing with cryptocurrency-related services.
A Wake-Up Call for Crypto Investors
The Bybit hack serves as a stark reminder of the vulnerabilities in the cryptocurrency market. With cybercriminals becoming more sophisticated, investors must take proactive steps to secure their funds.
Following Darren Stanton’s advice can help individuals navigate the risks associated with digital assets and avoid falling victim to fraud. As the industry continues to evolve, staying informed and exercising caution remains the best defence against financial losses.
Shikha Negi is a Content Writer at ztudium with expertise in writing and proofreading content. Having created more than 500 articles encompassing a diverse range of educational topics, from breaking news to in-depth analysis and long-form content, Shikha has a deep understanding of emerging trends in business, technology (including AI, blockchain, and the metaverse), and societal shifts, As the author at Sarvgyan News, Shikha has demonstrated expertise in crafting engaging and informative content tailored for various audiences, including students, educators, and professionals.
