Effective Crisis Management for CEXs: How to Prepare and Respond to Crypto Cyberattacks

Source: Crisis Management for CEX During a Cybersecurity Threat - CoinTelegraph

While cybersecurity defenses in crypto are advancing, centralized cryptocurrency exchanges (CEXs) still face persistent risks from cyberattacks. Even with stronger security measures, a single breach can cause massive financial losses, drive users away, and severely damage an exchange’s reputation.

Key figures highlight the scope of these attacks: Chainalysis reports that over $2.17 billion has been stolen from crypto services in 2025 alone, already exceeding all losses recorded in 2024 by mid-year.

Why Crisis Communication Matters as Much as Cyber Defense

Security teams often concentrate on technology and IT systems during a hack. However, managing the human element - users, regulators, staff, and the media - is equally critical.

Mistakes like delayed or unclear communication can amplify panic and trigger stricter regulatory scrutiny, which may harm the exchange beyond the initial incident.

A recent Cointelegraph analysis of multiple CEX hacks reveals a gap: many exchanges lack a coordinated communication strategy to keep all parties informed clearly and promptly.

Dan Kuzner, Senior Consulting Manager at Formula, underscores this point:

“What you say and how you say it matter just as much as your technical response.”

Building a Crisis Management Framework for CEXs

Developing a robust security incident response plan involves several focused steps:

• Evaluate your current process: Identify who leads communication in a cybersecurity event. Are escalation paths clear? Can your team quickly pick out and prioritize key stakeholders?
• Conduct risk assessments: Early detection of communication gaps prevents confusion during real incidents.
• Run tabletop simulations: Practice responding to a mock breach to expose weaknesses and improve team coordination under pressure.

When a breach occurs:

• Set up a centralized crisis command center to handle all outgoing messages.
• Collaborate closely with legal, compliance, PR, and customer support teams.
• Provide fast, accurate user updates without speculation-stick to verified facts.

Once the immediate danger passes, shift focus to recovery by:

• Keeping users informed about progress and new security measures.
• Publishing a detailed post-mortem when appropriate to demonstrate transparency.

Preparation: The Best Defense for Trust and Compliance

According to Jenny Ryan, Senior Marketing Specialist at Formula:

“Exchanges that prepare ahead create simple, actionable playbooks and train their teams regularly. They treat communication as a strategic priority, not an afterthought.”

Kate Zems, Head of Formula, adds:

“Effective crisis management begins well before an incident - through planning, training, and clear communication. Those who prepare early recover faster and maintain user trust.”

Practical Takeaways to Strengthen Your Exchange’s Security Response

• You don’t need perfection-just a tested plan: Regular rehearsals can help your team act decisively and confidently.
• Make crisis response a company-wide effort: Security, legal, communications, leadership, and support teams must all know their roles beforehand.
• Simulate incidents through tabletop exercises: Identify potential bottlenecks and miscommunications in a risk-free environment.
• Use communication strategically: Transparent and frequent updates help preserve trust and satisfy regulators. Silence or vague messaging tends to worsen the situation.
• Invest in preparation to minimize future losses: Time spent planning now prevents costly mistakes later.

Next Steps for Exchanges

• Map out your current incident response and communication workflows.
• Identify gaps and potential bottlenecks.
• Schedule regular simulation exercises with your team.
• Consider partnering with experienced advisors who have navigated similar high-stakes events.

With the right preparation, CEX teams can swiftly manage cybersecurity threats, communicate clearly with users and regulators, and protect their platform’s reputation.