All Bitcoin Exchanges Lax on Security, Should Get Rid of Hot Wallets
During the past 6 years (from 2009 to 2015), one-third of all Bitcoin exchanges have been hacked. While this is less than the rate of security breaches experienced by stock exchanges, which is over half, it is still many times that of banks, who reported a 1% instance of data breach. Bitcoin exchanges do implement certain measures to reduce the risk of hacks, such as partial cold storage and multisig wallets, but are they enough? CoinTelegraph spoke with Robert Genito, CEO of Genitrust, on why Bitcoin exchanges are not doing their proper due diligence to ensure that customer funds are kept....
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He isn’t surprised attacks happen. Crypto exchange security is once again in the news after hackers breached KuCoin. But this shouldn’t surprise people as exchanges are vulnerable by design, according to ByBit CEO Ben Zhou. Zhou told Cointelegraph that exchanges act as a single point of failure. As a centralized web application, exchanges are susceptible to the same security issues as all other websites. Security becomes even more important as investors and traders are increasingly taking exchanges to task to protect funds. The vast majority of crypto exchange servers and storage networks,....
Content theft has persisted as one of the worst ills of the internet generation. Data breaches and identity thefts have always left victims with a sour taste. Bitcoin wallets have been hacked and owners’ wealth stolen on several cases. Are there ways to ultimately prevent one’s wallet from being hacked? Is there any way of recovering stolen funds from a hacked wallet? Are exchanges obliged to refund Bitcoins stolen from a virtual wallet? Every hoster of virtual wallets and exchanges will always inform wallet owners of the importance of employing sometimes very basic, and at other times a....
From the massive security breach of the world’s largest bitcoin exchange Bitfinex, bitcoin users have learned a valuable lesson: to not store bitcoins on a custodial platform or an exchange. Storing Bitcoin on a hot wallet, or a Bitcoin wallet that is connected to the internet, is fundamentally dangerous because of possible vulnerabilities in the systems of an exchange or a wallet platform that may enable hackers to compromise user funds. Bitcoin exchanges store users’ bitcoins on hot wallets as they are required to send and receive bitcoins instantaneously upon the settlement of orders.....
Few consumers are using digital wallets - just 2% according to recent data from Gallup - and those who don't say concerns about security are the reason. Despite enthusiasm among financial tech observers and investors for digital wallets, it seems few users are enthused. Other studies suggest that while many consumers have heard about mobile wallets, overall adoption is low. New data released by Gallup adds to this canon, finding little interest for digital wallets - software that ostensibly enables easier payment via electronic means. Why? Fifty-five percent of those who don't use digital....
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