Cyber Attacks on Wall Street: Why the Cryptocurrency Market Remained Unmoved?

It has been reported that companies such as Point72, Citadel, Two Sigma, and Millennium have been targeted by cyber attacks using voice phishing. However, so far, there are no signs of customer funds, trading systems, or cryptocurrency infrastructure being compromised.

According to Mihan Blockchain, Bitcoin and Ethereum remained generally stable, indicating that traders view these incidents as operational security risks rather than a shock to the overall market. A greater concern for the cryptocurrency sector is the spread of these attacks: social engineering aided by artificial intelligence could target funds, market makers, custodians, and exchanges that lie between traditional finance and digital assets.

This week, several large hedge funds on Wall Street were hit by a wave of cyber attacks. The attackers reportedly used voice phishing (vishing) to trick employees into providing usernames and passwords or granting access to internal systems. This serves as a reminder of the growing threat of AI-assisted social engineering for financial institutions.

Despite the headlines, there has been no major impact on cryptocurrency markets. Traders are simply observing how these attacks unfold and want to see if they remain confined to traditional finance or expand to trading firms, exchanges, and custodians within the cryptocurrency ecosystem.

Maintaining Bitcoin and Ethereum Positions

Cryptocurrencies have remained very stable. The price of Bitcoin (BTC) stood at around $64,500, reflecting a slight gain of about 1% over the past week. The price of Ethereum (ETH) was around $1,900, recording a slight decrease of 0.5%. The total market size of cryptocurrencies remained around $2.3 trillion.

Traditional markets exhibited similar behavior. The VIX index (fear index) for Wall Street is nearly 15.8, indicating that investors have no reason to panic.

The fact that reactions are muted is notable as hedge funds are paying more attention to digital assets. Since some of these funds use the same prime brokerage networks to finance investments, a cyber attack could disrupt trading activities without directly attacking cryptocurrency exchanges. So far, investors view these incidents as operational issues rather than a potential threat to the market.

Why Cryptocurrencies Are in the Blast Radius

As cyber crimes often intersect with cryptocurrencies, cryptocurrency investors are paying attention. In a recent report "Navigating Cyber 2025" by FS-ISAC, it was noted that criminals tend to use real-time payment systems and cryptocurrencies to transfer stolen funds, making recovery nearly impossible.

The report also highlights the changing nature of cyber crimes as a result of generative AI. Criminals use AI to create deep fakes that resemble business executives, communicate, and behave in ways that simplify phishing attempts.

Disclosure Requirements

These events have also drawn attention to regulations regarding the disclosure of cybersecurity issues. Since 2023, the U.S. Securities and Exchange Commission (SEC) has required all public companies to report any cybersecurity-related incidents within four business days.

The insurance industry is also sharing similar concerns. The CEO of Zurich Insurance Group has warned that complex cyber breaches have become uninsurable due to systemic risk. The situation could be much worse for cryptocurrency companies as they have limited options for cyber insurance.

Investigations are still ongoing at several companies, but there are no signs of commercial infrastructure or assets being affected. However, if further disruptions occur, the calm response of the cryptocurrency market may change.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.