CYBERSECURITY AND INVESTOR PROTECTION IN CRYPTO EXCHANGES

AUTHOR – SEEMANT SINGH* & DR. JYOTI YADAV**

* LLM (CYBER LAW & CYBER SECURITY) AT AMITY UNIVERSITY, LUCKNOW

** ASSISTANT PROFESSOR AT AMITY UNIVERSITY, LUCKNOW

BEST CITATION – SEEMANT SINGH & DR. JYOTI YADAV, CYBERSECURITY AND INVESTOR PROTECTION IN CRYPTO EXCHANGES, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (6) OF 2025, PG. 10-19, APIS – 3920 – 0001 & ISSN – 2583-2344.

Abstract

The advent of cryptocurrency and blockchain technology has dramatically transformed the global financial ecosystem, with cryptocurrency exchanges acting as the primary venues for trading digital assets. While these exchanges have facilitated the growth and acceptance of digital currencies, they also present significant cybersecurity challenges. Cyber-attacks, fraud, and hacking incidents targeting these exchanges have led to major financial losses for investors, raising serious concerns about the safety of investments in digital assets. This paper explores the evolving landscape of cybersecurity and investor protection in crypto exchanges. It examines the risks inherent in cryptocurrency platforms’ unregulated environment, highlights notable cyberattack cases, and assesses the current legal and regulatory frameworks designed to safeguard investors. Through a detailed analysis of empirical data and case studies, the paper presents recommendations for improving security protocols, enhancing investor protection mechanisms, and strengthening the legal framework governing crypto exchanges. The conclusion emphasizes the need for robust, forward-looking regulations that balance innovation with the imperative of protecting investors.