'COVID-Like' Cyberattack Wave Could Spread Beyond Crypto, Venture Capitalist Warns

Dragonfly managing partner Haseeb Qureshi on Thursday warned of a “COVID-like” wave of cyberattacks spreading beyond cryptocurrency.

Qureshi warned that cryptocurrency hacks could be an early indicator of a much broader cybersecurity threat emerging across the internet.

"What’s happening in cybersecurity is a COVID-like wave ripping through the Internet," Qureshi said on X.

He argued that blockchain networks are particularly attractive targets because stolen digital assets can be monetized quickly.

“Onchain hacks are a canary for what will happen in the rest of web security,” he added.

The number of cryptocurrency hacks has surged, but the total dollar value stolen remains roughly in line with 2025.

This suggests attackers are increasingly exploiting smaller, poorly maintained protocols rather than targeting only major platforms.

AI Can Combat Rising Crypto Cyberattacks

Qureshi said larger crypto protocols are strengthening cybersecurity with AI-powered tools, while smaller projects remain vulnerable due to limited resources.

He expects similar risks across traditional internet services as hackers target weaker systems.

Arkham Intelligence CEO Miguel Morell said in an interview with Bitcoin Magazine on Wednesday that AI-powered blockchain analytics help investigators trace stolen funds across wallets, protocols and blockchains.

Suspicious transactions can be tracked to centralized exchanges, potentially enabling asset freezes and recovery.

Morell added that AI agents can analyze thousands of blockchain addresses within minutes, accelerating investigations.

Asset Sales, Security Or Routine Custody Transfer?

Arkham identified around $1 billion in Bitcoin transferred from U.S. government-linked wallets tied to the Bitfinex hack to unidentified addresses.

The transactions sparked speculation whether the government was preparing to sell Bitcoin despite restrictions under President Donald Trump’s Strategic Bitcoin Reserve executive order.

Morell noted that centralized exchanges frequently use omnibus custody systems, making it difficult to distinguish between asset sales, security measures and routine custody transfers.

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