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Security of Crypto Exchanges - Binaryx

Security of Crypto Exchanges: Is This Still an Issue for Exchanges?

Over the last five years, many cryptocurrency exchanges had faced many issues in terms of security. Have exchanges improved this aspect nowadays? Find out below.

Is Security of Crypto Exchanges Still a Problem?

Nowadays, many cryptocurrency investors, traders, and users know that they can utilize this or that crypto exchange, knowing that all its benefits. However, when it comes to security, even the best cryptocurrency exchanges fail to provide users with instant support by losing an unfair battle to hackers. Only this year, the dominant digital currency exchanges became victims of systematic hack-attacks by anonymous digital pirates at least once. Below, we will review the most significant cases in 2019.

The Bithumb attack in March 2019

The South Korean digital currency platform for trading and exchanging encountered a massive attack by hackers earlier this year. Initially, the exchange suspected a hack attack, yet it turned out to be an action by an insider employee. Everything has started with a questionable withdrawal. It forced developers to stop all the withdrawals for the next hours. Later, the exchange could not prove the existence of the hacking. As a result, the community understood the following: someone just has stolen the funds in the amount of 3 million EOS & 20 million XRP.

The Binance attack in May 2019

Although Binance is very popular among many crypto investors and traders, the community had a chance to raise concerns regarding its security. Given that hackers are always intended to create troubles for top exchanges, Binance was the best option for them. The total stolen amount of cryptocurrency funds was estimated at $40 million in BTC. Even though Binance continued to improve security measures, the majority of crypto traders and investors decided to leave the exchange.

The Coinmama attack in May 2019

Unlike previous examples, this time, hackers did not aim to steal digital funds from users. Their primary mission was complete, as they snatched users’ data, including emails and passwords. As the largest cryptocurrency broker, Coinmama faced a serious of issues and allegations from the community. However, all users lost no funds. 

The Cryptopia attack in January 2019

The series of hack attacks almost destroyed the cryptocurrency exchange. In January, due to the security issues, hackers managed to steal cryptocurrency funds in ETH. The first attack was estimated at 1,675 ETH. Of course, it was a significant blow for crypto exchange users, but it was not over. Following the first cyber-attack, later, an enormous amount of ETH – 19,390 – were stolen in a few hours. As a result, the cryptocurrency exchange could not solve these issues, and they decided to shut down the project.

The Bitrue attack in June 2019

The first half of this year brought many issues for major cryptocurrency exchanges. However, hackers did not want to stop at this point. The next victim and target of their malicious attacks was the Singapore-based exchange Bitrue. This time, the main hot wallet of the exchange was hacked. According to provided data by founders, almost ninety users were considered as hack victims. The cryptocurrency funds, namely 2.500.000 of ADA coins and 9.300.000 of XRP, were taken away.

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