Crypto In 2025 And Beyond: The Author’s One-on-one With Chainalysis CEO Jonathan Levin
Following the $1.5 billion Bybit hack—the largest crypto theft to date—the entire crypto industry was forced to take a hard look in the mirror, confronting the critical vulnerabilities it still faces. However, the incident also showed how coordinated the public and private sectors can be—more than $40 million in stolen funds were frozen, with Chainalysis contributing significantly to the effort.
When it comes to data, the reports Chainalysis delivers—especially its annual Crypto Crime Report—have become indispensable resources not only for investigators and regulators but for anyone serious about the future of digital assets. This year’s edition reveals some unpleasant truths we have to accept: illicit cryptocurrency volume is expected to exceed 2023 levels, ransomware and darknet markets are staging a dangerous comeback, and state-affiliated threat actors are becoming bolder and more strategic.
Reports like this shape industry narratives and regulatory direction. That’s why it was such a privilege to speak exclusively with Chainalysis Co-Founder and CEO Jonathan Levin—whose deep insights have earned him multiple invitations to testify before the U.S. Congress—about what these and other numbers really mean.
As someone who has long studied these reports and often cited them in my analyses, hearing directly from Jonathan Levin felt like those data-packed pages had come to life. His voice gave form to the trends, risks, and urgent calls to action that Chainalysis outlines year after year—only this time, the insights offered much-needed clarity and what we as an industry must do next.
In our conversation, he went beyond the numbers—breaking down the real-time response to the Bybit hack, explaining how AI is simultaneously a threat and a solution, and forecasting how crypto will evolve in 2025 and beyond.
$1.5B Bybit Hack Shows Industry’s Weakest Links—But Also Its Strength
“This attack once again reminded the industry of the concrete consequences when threat actors identify and exploit vulnerabilities in crypto platforms or their supply chains,” Levin said of the Bybit hack. “But the good news,” he added, “is that a broad array of steps can be taken to prevent such attacks.”
He cited Chainalysis Hexagate as a critical tool in this fight:
“It uses machine learning to provide real-time web3 security solutions that detect and mitigate cyber threats, acts as an independent cosigner and transaction validator to analyze transactions before they are signed. This layer helps detect malicious transactions, flags anomalies, and automatically denies high-risk operations before they are executed.”
Levin also emphasized the importance of combining both Web2 and Web3 best practices.
“Endpoint Detection and Response tools, strict signer communication protocols, and wallet-level policy controls can all help protect crypto businesses from hacks,” he explained.
Despite the severity of the Bybit attack, Levin pointed out the role blockchain transparency plays in fighting back.
“Every transaction is recorded on a public ledger, enabling authorities and cybersecurity firms to trace and monitor illicit activities in real time,” he said.
“Already, we’ve worked with contacts in the industry to help freeze more than $40 million in funds stolen from Bybit and continue to collaborate with public and private sector organizations to seize as much as possible.”
He noted the cooperative spirit shown by Bybit and the broader ecosystem:
“The swift response from Bybit, including its assurance to cover customer losses and its engagement with blockchain forensic experts, exemplifies the industry’s commitment to mutual support and resilience. By uniting resources and intelligence, the crypto community can strengthen its defenses against such sophisticated cyberattacks and work toward a more secure digital financial environment.”
Can DEXs Still Be Decentralized and Secure?
Decentralized exchanges allow users to swap assets anonymously, creating a lot of headache for law enforcement, but according to Levin, that doesn’t mean they’re beyond accountability.
“Managing risk and curbing illicit activity going through a DEX can be approached in multiple ways—from the DEX itself as well as from authorities working to reduce …
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