Crypto exchanges like Binance or Coinbase handle billions of dollars in digital assets, making them prime targets for hackers. Unlike traditional banks, many crypto platforms operate in a rapidly evolving space where security standards are still catching up, and attackers are constantly looking for vulnerabilities in infrastructure, APIs, or user accounts.

Another key reason is centralization risk. Even though crypto itself is decentralized, exchanges act as centralized hubs that store large amounts of funds. This creates a “honeypot” effect — if hackers succeed once, they can access massive liquidity. Combined with human errors like weak passwords or phishing attacks, this significantly increases the likelihood of breaches.