Why Do Cryptocurrency Exchanges Remain Vulnerable? A Comparative Analysis of the Bybit (2025) and Binance (2026) Security Incidents

This paper examines why cryptocurrency exchanges remain vulnerable to cyberattacks by comparing two security incidents: Bybit in February 2025 and Binance in October 2026. Using statements from the companies involved, news reports, and data from 220 cryptocurrency exchange incidents between 2009 and 2024, the study explores common vulnerabilities, attack methods, financial impacts, and potential solutions.The findings identify recurring vulnerabilities, including wallet and key compromises, unauthorized access, human error, and third-party services. The paper also discusses emerging risks associated with quantum computing and AI agents with financial capabilities. In addition, it presents security recommendations such as improved key management, secure transaction processes, stronger employee and third-party security, and better recovery plans.The Binance incident is still under investigation; therefore, some reported figures and findings may change.