Exchange Exploit

Definition ∞ An exchange exploit refers to a security vulnerability within a cryptocurrency exchange platform that is leveraged by malicious actors to gain unauthorized access or illicitly acquire assets. These attacks often target weaknesses in the exchange’s code, infrastructure, or operational procedures. Successful exploits typically result in significant financial losses for the exchange and its users. They underscore the critical need for robust cybersecurity measures in digital asset trading venues.
Context ∞ News about digital assets frequently details exchange exploits, which significantly impact market confidence and lead to calls for enhanced security protocols. These incidents highlight the operational risks associated with centralized cryptocurrency platforms and can trigger sharp price declines for affected assets. Regulators often cite exchange exploits as justification for increased oversight and stricter compliance requirements for digital asset service providers.