Connect with us

Published

on

Stop pretending technical and human vulnerabilities are separate things

Opinion by: Andrey Sergeenkov, researcher, analyst and writer

Crypto founders love big promises: decentralized finance, banking the unbanked and freedom from intermediaries. Then hacks happen. In some cases, billions vanish overnight. 

On Feb. 21, 2025, the North Korean Lazarus Group stole $1.46 billion from Bybit. They sent phishing emails to staff with cold wallet access. After compromising these accounts, they accessed Bybit’s interface and replaced the multisignature wallet contract with their malicious version. When Bybit attempted a routine transfer, the hackers redirected 499,000 Ether (ETH) to addresses they controlled.

This wasn’t just a human error. This was a design failure. A system that allows human factors to enable a billion-dollar theft isn’t innovative — it’s irresponsible.

People are not protected

In just 10 days, the hackers converted all 499,000 ETH into untraceable funds, using THORChain as their primary channel. The decentralized exchange processed a record $4.66 billion in swaps in a week but implemented no safeguards against suspicious activity.

The crypto industry has created a system that cannot protect users even after they discover a theft. Some services actually profited from this crime, collecting millions in fees while processing the laundering of stolen funds.

Recent: SafeWallet releases Bybit hack post-mortem report

In February 2025, investigators ZachXBT and Tanuki42 revealed that Coinbase users lost over $300 million annually to social engineering attacks. Their report showed $65 million stolen through phishing and other social manipulation techniques in December 2024 and January 2025. According to the investigators, Coinbase failed to address known security vulnerabilities in their API keys and verification systems that make these human-targeted attacks successful. 

ZachXBT directly criticized the exchange for having “useless customer support agents” and failing to properly report theft addresses to blockchain monitoring tools, making stolen funds harder to track. One scammer even admitted to targeting wealthy users, claiming they make at least five figures a week.

These aren’t isolated cases. The US Federal Bureau of Investigation reported that ordinary crypto users lost over $5.6 billion to fraud in 2023, and social engineering drove at least half of these schemes. Americans alone lose approximately $2 billion–$3 billion annually to human vulnerability attacks. With over 600 million crypto users worldwide, conservative estimates put individual losses from social engineering at $6 billion–$15 billion in 2024. 

Barrier to adoption

Security concerns are now recognized as the main barrier to adoption by 37% of crypto users worldwide. Meanwhile, the industry continues to promote high-risk speculative assets like memecoins, where average users typically lose money while insiders profit.

While founders pitch financial freedom, millions of real people lose their savings through vulnerabilities the industry refuses to address. They’re symptoms of a fundamental problem: Crypto builders choose marketing over security.

When disasters happen, and they face pressure about security failures, crypto leaders hide behind blockchain’s “code is law” principle and offer philosophical arguments about self-sovereignty and personal responsibility. The crypto industry loves to blame ordinary users: “Don’t store keys online,” “Check addresses before sending,” “Never open suspicious files.”

Nobody is safe

Even industry leaders themselves fall victim to the same basic attacks. In January 2024, Ripple co-founder Chris Larsen lost 283 million XRP (XRP) due to storing private keys in an online password manager. DeFiance Capital founder Arthur_0x lost $1.6 million in non-fungible tokens (NFTs) and cryptocurrency simply by opening a phishing PDF file. 

These people aren’t naive beginners — they’re creators and experts of the very system that could not protect even them. They know all the security rules, but the human factor is inevitable. If even the system architects lose millions, what chance do ordinary users have?

Knowledge of security rules doesn’t provide complete protection because fever, stress, sleep deprivation or emotional distress severely affect our decision-making abilities. Attackers continuously test different approaches, waiting for moments when users become vulnerable. They evolve their tactics constantly, creating increasingly convincing scenarios, impersonations and urgent situations. 

The unchangeable nature of blockchain transactions demands extraordinary safeguards — not fewer. If users can’t reverse mistakes or thefts, the system must prevent them in the first place. True innovation means building systems that work for real humans, not theoretically perfect users. Banks learned this lesson over centuries. Crypto builders must learn it faster.

Instead, industry leaders seem to have lost touch with reality due to the extreme wealth dumped on them quickly. They’ve bought into their PR narrative, portraying them as geniuses, and started viewing themselves as visionaries.

A call to action

Vitalik Buterin lectures his audience on voting in elections and polishes his manifesto, while Justin Sun spends $6.2 million on a banana for a “unique artistic experience” — all while building an environment that makes dangerous mistakes easy to make. This approach is fundamentally dishonest. You can’t claim to revolutionize finance while providing less security than the systems you’re replacing.

What technical brilliance exists in systems that permit billion-dollar thefts and systematic fraud of ordinary users with such ease? As a core function, true technical excellence would include protecting users from permanent financial loss. A financial system that cannot secure its users’ assets is not technically advanced — it’s fundamentally incomplete.

It’s time to stop writing manifestos and promoting questionable PR stunts designed to attract a broader and more vulnerable audience. Start building genuine protections that match the level of risk your users face. No amount of blockchain innovation matters if ordinary people cannot use these systems without fear of instant, permanent financial loss.

Anything less is just reckless experimentation at users’ expense disguised as a revolution — a scheme that enriches founders and insiders while ordinary people bear all the risks.

If the industry doesn’t solve this problem, regulators will — and you won’t like their solutions. Your philosophical arguments about self-sovereignty won’t matter when licenses are revoked and operations shut down.

This is the choice crypto builders face: Either create truly secure systems that justify your claims about financial innovation or watch as regulators transform your “revolutionary technology” into another heavily regulated financial service. The clock is ticking.

Opinion by: Andrey Sergeenkov, researcher, analyst and writer.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Continue Reading

Politics

Kosovo PM Albin Kurti: We feel ‘obligation’ to host UK migrant return hub

Published

on

By

Kosovo PM Albin Kurti: We feel 'obligation' to host UK migrant return hub

Kosovo feels a “political duty” to process failed migrants from the UK, if legal issues can be overcome, the country’s prime minister has told Sky News.

Albin Kurti said there is “limited capacity” in the small nation, which has a population of fewer than two million people, but that he expected a “successful result” from negotiations.

Talks are under way, he confirmed, between officials from both countries about a migrant returns deal for those whose claims have been ruled ineligible by the UK, and are awaiting deportation to their country of origin.

A Home Office team is exploring options for how one could work, Sky News understands, although no formal request has yet been made to Kosovo to host a facility.

Mr Kurti, who is attending a Western Balkans Summit in London this week, said: “We want to help the UK, we consider that that is our friendly and political duty.

“We have limited capacity but still we want to help, and as we speak, there is regular communication between our teams of state officials from our ministry of internal affairs and lawyers about how to do this smoothly for mutual benefit.

“Of course, we want, as a country, to benefit but we consider it first and foremost our obligation to help you because you helped us a great deal and will never forget that.”

Rescued migrants are brought in by the RNLI to Dover earlier this month. Pic: PA
Image:
Rescued migrants are brought in by the RNLI to Dover earlier this month. Pic: PA

Western Balkans key allies

Sir Keir Starmer has identified the countries of the Western Balkans as key allies in the fight against irregular migration, with 22,000 people using this route to reach the UK last year.

The UK government has signed agreements to tackle smuggling gangs with Serbia, Albania, North Macedonia and Kosovo.

Keir Starmer said earlier this year that the government was in talks with unnamed countries about setting up “return hubs” which he called an “important innovation” for individuals who have exhausted all appeals in the UK system.

Kosovo is the first to confirm these negotiations are under way, and further discussions about it are likely in the margins of this week’s summit.

The small eastern European nation and the UK have strong ties, with Sir Tony Blair feted in the country for his government’s role in spearheading NATO airstrikes on Serbia in 1999, which helped end the Kosovo War.

In June, Kosovo made an agreement with the US, negotiated under the Biden administration, to take up to 50 US deportees who met certain criteria. But it is understood only one or two have arrived due to legal issues.

Kosovo would likely be seeking a defence agreement and UK investment in return, with the country concerned about Russian aggression and hostility from neighbouring Serbia.

Read more:
UK to ask Kosovo to take migrants
Govt considering sending failed asylum seekers to overseas migrant hubs

Tony Blair receiving a hero's welcome in Kosovo in 1999. Pic: Reuters
Image:
Tony Blair receiving a hero’s welcome in Kosovo in 1999. Pic: Reuters

Kosovo wants security support

Mr Kurti added: “We would like mainly to get support in security – be that through strategic agreements, or through equipment and projects we might do. Our two teams are working on this, but I think this will have a successful result.”

It is not expected the UK will make a formal request until further legal issues are worked through, which could be significant.

A controversial deal made by Italy in 2023 to send thousands of migrants to two detention centres in Albania has cost millions of euros and been halted by multiple legal obstacles.

Andi Hoxhaj, Balkan expert at King’s College, said: “Such a deal is unlikely to happen at the Summit. Nevertheless, I expect some statement indicating that the UK and one or two Western Balkan countries are close to reaching an agreement.”

“Establishing an agreement with the UK would not be politically sensitive in Kosovo. The country continues to seek deeper ties with one of its strongest allies-one that played a crucial role in its path to independence.”

Kosovo has convict deal with Denmark

Sir Keir was left embarrassed on a visit to the Albanian capital in May when he announced the UK was in talks about return hubs in the Balkans, only for Albanian Prime Minister Edi Rama to say he would not allow the UK to “dump immigrants” in his country when it is in a “marriage” with Italy.

Under Yvette Cooper, the Foreign Office has shifted focus to migration – with more staff working on the issue, drawing up sanctions on people smugglers and pursuing returns agreements.

Kosovo has also ratified a deal with Denmark – another active contributor to the NATO-led Kosovo peacekeeping force – to take 300 convicts from its overcrowded prisons, due to start in 2027.

Return hubs are different from offshore processing – which is what the Conservatives had proposed with the Rwanda scheme.

It is proposed that individuals would only be sent to a return hub if their claim for asylum in the UK had been rejected – and they were awaiting deportation.

By sending them to a third country, the government hopes it will prevent people trying to frustrate and delay the process of removal and that it could act as a deterrent to people coming in small boats.

Only 3% of people of small boat arrivals in 2018-24, or around 5,000 people, were returned from the UK, according to the Oxford Migration Observatory, although removals of failed migrants from all routes has increased in the past year.

Continue Reading

Politics

Police should focus on ‘tackling real crime’, No 10 says, after Met Police halts non-crime hate probes

Published

on

By

Police should focus on 'tackling real crime', No 10 says, after Met Police halts non-crime hate probes

Officers should focus on “tackling real crime and policing the streets”, Downing Street has said – after the Metropolitan Police announced it is no longer investigating non-crime hate incidents.

The announcement by Britain’s biggest force on Monday came after it emerged Father Ted creator Graham Linehan will face no further action after he was arrested at Heathrow Airport on suspicion of inciting violence over three posts he made on X about transgender issues.

Politics latest: Boris Johnson left in ‘homicidal mood’ after exam result fiasco

Sir Keir Starmer’s spokesman said police forces will “get the clarity they need to keep our streets safe” when a review of non-crime hate incidents by the National Police Chiefs’ Council and College of Policing is published in December.

“The police should focus on tackling real crime and policing the streets,” he said.

“The home secretary has asked that this review be completed at pace, working with the National Police Chiefs’ Council and the College of Policing.

“We look forward to receiving its findings as soon as possible, so that the other forces get the clarity they need to keep our streets safe.”

More from Politics

He said the government will “always work with police chiefs to make sure criminal law and guidance reflects the common-sense approach we all want to see in policing”.

After Linehan’s September arrest, Met Police Commissioner Sir Mark Rowley said officers were in “an impossible position” when dealing with statements made online.

File pic: iStock
Image:
File pic: iStock

On Monday, a Met spokesperson said the commissioner had been “clear he doesn’t believe officers should be policing toxic culture war debates, with current laws and rules on inciting violence online leaving them in an impossible position”.

The force said the decision to no longer investigate non-crime hate incidents would now “provide clearer direction for officers, reduce ambiguity and enable them to focus on matters that meet the threshold for criminal investigations”.

Justice minister Sarah Sackman said it is “welcome news” the Met will now be focusing on crimes such as phone snatching, mugging, antisocial behaviour and violent crime.

Asked if other forces should follow the Met’s decision, she said: “I think that other forces need to make the decisions that are right for their communities.

“But I’m sure that communities up and down the country would want that renewed focus on violent crime, on antisocial behaviour, and on actual hate crime.”

The Met said it will still record non-crime hate incidents to use as “valuable pieces of intelligence to establish potential patterns of behaviour or criminality”.

Continue Reading

Politics

Fed mulls ‘skinny’ payment accounts to open rails for fintech, crypto firms

Published

on

By

Fed mulls ‘skinny’ payment accounts to open rails for fintech, crypto firms

Fed mulls ‘skinny’ payment accounts to open rails for fintech, crypto firms

Industry watchers welcomed the idea of “skinny” master accounts as another sign of the end of crypto’s banking troubles, in what insiders describe as “Operation Chokepoint 2.0.”

Continue Reading

Trending