Centralized exchanges remain prime targets, with hacks like the 2025 Ronin breach teaching hard lessons. This explores mechanics, prevention, and post-hack recovery. 1. Vulnerability Exploitation Hackers target hot wallets or APIs via social engineering or code flaws. Breaches expose private keys, enabling mass withdrawals. 2. Initial Fund Movement Stolen assets are split rapidly, avoiding exchange blacklists. 3. Advanced Obfuscation Chain hops and mixers launder, with conversions to stablecoins. Educatively, exchanges now use multi-sig for security. 4. Cash-Out Challenges Funds reach fiat via peer-to-peer or weak-KYC platforms. Where Tracing Can Intervene Exchange cooperation allows freezes; forensics trace paths. Cryptera Chain Signals aids in hack recoveries, mapping flows for 2026 successes. Reach out at https://www.crypterachainsignals.com/ or info@crypterachainsignals.com. Diversify holdings and enable 2FA.