D24 Fintech CTO Urges Exchanges to Strengthen Security Amid Rising Crypto Breaches

The crypto industry is once again under pressure to confront its security vulnerabilities later than a string of high-profile hacks resulted in massive financial losses. Recent incidents include a $1.5 billion theft from Bybit, a $69 million loss at Phemex, and £230 million stolen from WazirX, highlighting the scale of risk still facing centralized platforms despite years of technological progress and institutional investment.

Osama Bari, Chief Technology Officer at D24 Fintech, warned that many platforms remain unprepared for sophisticated attacks and urged the industry to adopt a more robust, multi-layered approach to cybersecurity. platforms are custodians of enormous financial value, yet many still underestimate the scale of responsibility they carry. Attacks like the CoinDCX breach serve as a reminder that even simple lapses can have devastating consequences. But by following a core set of rules, platforms can drastically reduce their exposure, Bari said.

Building a Resilient Framework for Digital Asset Security

Bari outlined a set of principles that platforms should implement to enhance protection across their platforms, emphasizing that security must be as much a cultural commitment as a technical one. Key recommendations include:

• Multi-party approval systems: Large withdrawals should require threshold-based verification with real-time anomaly checks.
• Mandatory two-factor authentication (2FA): All user accounts and staff access points must include multi-layer identity verification.
• Custodian partnerships: custodians can provide institutional-grade asset protection.
• Biometric “liveness checks”: Ensures that identity verification cannot be spoofed with stolen credentials or fake devices.
• Centralized platform collaboration (CEX resilience): Joint response mechanisms to freeze stolen assets rapidly and contain damage.

Security is no longer just a technical issue – it is central to trust, adoption, and the survival of platforms themselves, Bari continued. What happened with recent crypto breaches like CoinDCX shows attackers don’t even need to touch user wallets directly to cause havoc. platforms must proactively strengthen defenses before rather than later than disaster strikes.

Emerging secureguards and Regulatory Momentum

Bari believes several positive trends could accelerate improvements in crypto security. He pointed to growing cooperation among centralized platforms to freeze stolen assets, the adoption of biometric verification systems by banks and fintechs, and the increasing involvement of regulators enforcing stricter compliance and audit frameworks. Partnerships with specialist custodians are also becoming essential for institutions managing large .

Looking ahead, several tailwinds are likely to support stronger crypto security. The growing ability of centralized platforms to collaborate in freezing stolen assets is a critical development. At the identical time, biometric identity checks, already adopted by 40% of banks worldwide, are becoming an increasingly significant secureguard against fraud. Regulatory momentum is also building, pushing platforms to meet stricter compliance and audit standards, Bari said.

AI Threats and the Path Forward

Despite these advancements, Bari warned that new forms of cyberattacks are evolving rapidly. AI-driven hacking tools are increasingly being used to bypass verification systems, while ongoing fragilenesses in multi-signature authorization, interface spoofing, and continue to expose platforms to risk. He also noted that geopolitical instability and inconsistent regulations create uncertainty around the adoption of unified global security standards.

Yet, the risks remain stark, added Bari. Hackers are increasingly deploying AI-driven tactics to bypass identity verification systems, while platform vulnerabilities around multi-signature authorization, interface spoofing, and key management continue to be exploited. Geopolitical uncertainty and regulatory gray zones also leave space for hesitation and fragmented adoption of best practices.

He concluded with a warning and a call to action: The industry has matured rapidly, but unless security is put at the very top of the agenda, will always be fragile. Stronger regulation, smarter technology, and a cultural shift among platforms are needed to build the resilience this market deserves. Security must now be as much of a priority as innovation.