Bybit’s $1.4B Hack Highlights Danger of Concentrated Crypto Losses
December’s total crypto losses dropped to $76 million, a 60% decline from November, yet the month was far from tranquil. Alongside the large-scale $50 million address‑poisoning exploit, the market is still reeling from Bybit’s reported $1.4 billion hack, which has spotlighted how a single breach or platform failure can create outsized damage.
The contrast between lower aggregate losses and high-impact incidents matters because it shows risk concentration rather than broad-based improvement. Large custodial exposures, counterparty links, and uninsured holdings amplify contagion risk and heighten scrutiny from traders, insurers, and regulators. Market participants are likely to push for stronger audits, tighter custody practices, and clearer recovery frameworks as the industry digests these latest losses.