IRA Financial Trust ($37 million), BitMart ($150 million), AscendEX ($80 million), Binance ($40 million), Crypto.com ($34 million), and other cryptocurrency exchanges have all experienced attacks and breaches. This is on top of the multibillion-dollar meltdowns of loan firms like CelsiusCEL 0.0% and BlockFi that provided certain brokerage services, or exchanges like FTX and Voyager.

To exacerbate matters, the great majority of cryptocurrency investments are not protected by the same insurance that covers traditional financial assets like bank accounts and securities. Investors should also be aware that most cryptocurrency exchanges, even those that do provide insurance, will not pay back consumers whose accounts are compromised as a result of weak password security,