Crypto trust is broken – can it be rebuilt?

Is crypto in the middle of a trust crisis – or finally solving one? That was the central question at the HODL summit in Dubai, where leaders from major exchanges revealed how they’re rebuilding the industry’s most fragile currency: belief.

The collapse of FTX – one of the world’s biggest crypto exchanges – in 2022 exposed deep flaws in accountability. But more recently, a different kind of crisis tested the industry’s response: when Bybit suffered a major hack in early 2025, Bitget stepped in with an emergency loan.

“We lent them 40,000 Ethereum right away,” said Bitget CEO Gracy Chen, “with no collateral, no interest, not even a contract – purely based on friendship and trust.”

That story opened the panel, moderated by Nic Watson, host of the Encrypted podcast. “Are we in crisis? Are we not? This is what we're here for,” he said, setting the tone for a discussion that made clear: while the scale of crypto hacks has shifted, the pressure to adapt remains constant.

From hacks to help: Crypto’s new playbook

In 2022, the crypto industry faced what Watson called “probably one of the largest volume of hacks and thefts in the history of crypto.” In 2023, “it lowered,” he added, and by 2024, “it seemed to be stabilizing.”

But 2025 is proving different. Watson noted that this year’s figures may be skewed by the scale of a single major incident. “We’re in a situation where, if we pro rata for the rest of the year, we should be on track for one of the biggest years – $3.6 billion of potential incidences,” he said, referring to the unprecedented size of the Bybit hack earlier this year.

Despite this, exchanges aren't just counting costs – they’re getting better at containment and prevention.

When Bybit was attacked, Bitget responded within hours. “At that point, we didn't even have time to think about percentages,” Chen said. “We just needed to help.”

This cooperative mindset stands in contrast to traditional finance. Reflecting on the 2008 financial crisis, Strauber, KuCoin’s EU CEO, said, “In the financial crisis, nobody trusted each other anymore. In crypto, it took us a couple of hours to rebuild trust.”

Strauber was referring to the collapse triggered by Lehman Brothers – a moment that Watson compared to the FTX fallout. “FTX was our Lehman Brothers,” Watson said. “But Lehman Brothers destroyed the world, while FTX has essentially been recovered.”

Building shields, not silos

The emphasis on mutual support is now being matched with technical improvements. KuCoin, for example, employs 1,000 developers (out of a total of 1,500 employees) dedicated to backend and system security. It has also obtained institutional certifications like SOC 2 and ISO 27001 to validate its processes.

“We also had a hack back in the days – 2020,” said Strauber. “From that point in time on, we put a lot of efforts into our security.”

“Trust is the most important thing,” Strauber said, “and security is probably the most critical aspect of building that trust.”

Chen acknowledged that “running an offshore exchange is becoming harder and harder,” but emphasized that platforms must rise to meet growing compliance and technical expectations.

Nils Andersen-Röed, Global Head of the Financial Intelligence Unit at Binance, explained how the exchange is investing in proactive defenses. “We delivered over 100 training sessions to 3,100 law enforcement officers from 86 countries,” he said.

That work is part of Binance’s broader collaboration with regulators and police. The company handles around 65,000 law enforcement requests each year, using blockchain analytics and transaction monitoring tools to detect and stop criminal activity.

“The public nature of blockchain makes it easier for us to work together,” Andersen-Röed said. “We believe we prevented $2.8 billion of potentially fraudulent funds last year.”

Trust sells better than secrets

Transparency is playing an increasing role in rebuilding user confidence. Many exchanges now publish “proof of reserves” reports, showing they hold sufficient assets to cover user deposits. This approach gained momentum after the FTX collapse, which exposed hidden liabilities and poor accounting practices.

While attackers still occasionally breach systems, it's becoming harder to make use of the stolen funds. According to panelists, a significant portion of crypto taken during hacks remains frozen thanks to rapid reporting and real-time monitoring.

A key insight repeated throughout the session was the idea that while exchanges may compete, they are united against a common adversary. Several speakers emphasized that they are not enemies to each other – hackers are the common enemy.

A shared future, secured together

Looking ahead, the panelists expressed optimism that the industry will continue professionalizing. By 2026, they predicted, a formal alliance of exchanges with shared security protocols could emerge. This would mark a shift from fragmented responses to coordinated defense.

Strauber closed with a hopeful call to action: “Let’s make it a safe and better place for investing and financing in the world.”

The message to users is clear. Crypto platforms are not standing still. While risk can never be fully eliminated, the industry is becoming more transparent, resilient and collaborative. From real-time incident response to long-term infrastructure, the wild west era is giving way to something more structured.

For now, the journey continues. Hackers are constantly evolving, and exchanges must stay ahead. But if the speakers made one thing clear, it’s that crypto is learning from its scars – and growing stronger because of them.