Why Move Your Crypto Away from Exchanges

The world of cryptocurrency is constantly evolving, but one persistent lesson remains: leaving your digital assets on exchanges is risky. In 2025 alone, the scale and severity of exchange-related breaches and regulatory upheavals have made self-custody not just a best practice, but an urgent priority for anyone serious about security and sovereignty.

The Escalating Risk of Exchange Breaches

Exchange hacks have long haunted the crypto industry, but this year’s numbers are especially sobering. By mid-2025, over $2.17 billion has already been stolen from cryptocurrency services—a figure that already surpasses the entirety of 2024. The most notable single event was the $1.5 billion hack of ByBit, marking the largest crypto theft in history and accounting for more than two-thirds of all funds stolen so far this year. These incidents are not isolated: the frequency and scale of breaches have increased, especially during periods of high market activity, and certain regions like the U.S., Hong Kong, and South Korea remain hotspots for exchange-related incidents
Chainalysis 2025 Crypto Crime Mid-Year Update
Coincub Crypto Asset Risk Report 2025.

Despite exchanges tightening their security postures, the industry’s open architecture means breaches remain a persistent threat. Many platforms suffer from structural weaknesses, such as custodial vulnerabilities—where private keys are a single point of failure—and inconsistent security across jurisdictions.

Regulatory Uncertainty and Compliance Shocks

2025 has seen a clear migration of exchange activity toward more regulated environments, driven by growing user demand for compliance and mounting regulatory pressure. Some exchanges have proactively embraced regulatory frameworks, but others continue to operate in gray areas, increasing the risks for users who entrust them with their assets. Regulatory enforcement has become swifter and more coordinated, with authorities moving from multi-year investigations to near-immediate action, often resulting in service disruptions, frozen funds, or forced changes to business operations
Coincub Crypto Asset Risk Report 2025.

If you rely on a single centralized platform for storage, you’re exposed not only to technical risks, but also to jurisdictional and legal surprises—including sudden withdrawals or trading halts.

The Increasing Threat to Individual Users

While large-scale exchange breaches grab headlines, individual wallet compromises are also on the rise. In 2025, attackers targeting personal wallets accounted for over 23% of stolen funds—an all-time high. Tactics include phishing, malware, and even physical threats (“wrench attacks”) timed to market surges
Chainalysis 2025 Crypto Crime Mid-Year Update.

Attackers are increasingly sophisticated, often using social engineering or exploiting weak wallet security. For users whose assets reside on an exchange, recovery options are limited and sometimes non-existent.

Why Not Just Trust the Exchange?

Exchanges are attractive targets precisely because they aggregate user funds and must balance complex operational needs with evolving regulatory demands. Even if your chosen exchange is regulated and boasts strong security, consider the following:

• Single Point of Failure: If the exchange’s custody is breached, all pooled assets may be at risk.
• Regulatory Seizures: Authorities can freeze or seize funds with little warning, impacting all users regardless of individual conduct.
• Liquidity Risks: In the event of a crisis, exchanges may suspend withdrawals, leaving users unable to access their funds when they need them most.

Current trends indicate that no exchange, no matter how reputable, is immune to these risks. For the latest in industry security incidents and regulatory changes, review this WTW Crypto Risk Analysis for 2025.

The Case for Self-Custody

Self-custody means holding your own private keys, ensuring that you—and only you—control your assets. This approach has several distinct advantages:

• Sovereignty: You are not dependent on third parties, so neither technical failures nor regulatory actions can freeze your assets.
• Security: Properly managed self-custody solutions like hardware wallets keep your private keys offline and out of reach from most digital threats.
• Privacy: You avoid the risk of data breaches that could expose your personal details or transaction history.

For most users, hardware wallets represent the gold standard for secure self-custody because they isolate private keys from internet-connected devices and malicious actors.

Choosing the Right Self-Custody Solution

When moving assets off of exchanges, it’s crucial to choose a custody approach that balances usability with robust security. OneKey stands out with features specifically designed to address today’s threat landscape:

• Open-source firmware for transparent security audits
• Support for a wide range of blockchains and tokens
• Intuitive interface suitable for both beginners and advanced users
• Advanced protections against physical and remote attacks

As the industry continues to evolve—and as risks and regulations keep shifting—taking control of your assets is the foundation of digital financial security. If you’re ready to move your crypto away from exchanges and into your own hands, consider using a secure and trusted hardware wallet like OneKey. Your assets, your control—now and in the future.