Blockchain Analyst Expert Affirms Nearly $2.5 Million USD Is Stolen From Bitcoin Exchanges Daily
If there is only a single aspect that crypto companies need to focus on during 2019 to be able to achieve better results is security. At least that’s our take after seeing what Hartej Sawhney has to say.
Sawhney is the co-founder of Hosho.io and a security expert that claims that around $2.5 million USD is stolen from crypto exchanges on a daily basis. You read it right, I wrote “daily basis”. According to him, companies from all over the world are getting hacked all the time despite how much they talk about their products being secured by the best technology.
The security expert has made these claims during a recent interview for CNBC, in which he associated the issues with how the technology used to defend the assets is poor and hackers use this to steal it. He has recently affirmed on Twitter that people ask him for help on a daily basis because they have been hacked.
I am contacted by people freaking out after being hacked daily
— hartej ™ (@hartej_) January 23, 2019
Curiously, not all of the hacks are so big and not all of them are so famous like the ones we talk about on our blog, but he claims that people seriously consider being more careful holding their private keys in case they do not want them to be taken.
According to the security expert, exchanges need to learn that valuing security is the best strategy because they are failing a lot with this and they constantly lose money with cases like this one.
One can remember high profile cases like Mt Gox, which was the largest crypto exchange in the world and had to shut down after it was hacked. Since 2013, things are not that much better and we still see our share of hacks every single year.
Another complaint made by Sawhney was that the industry is currently lacking full-stack developers who know Solidity as an important reason that could explain why the exchanges are making such an awful job with their security.
Hackers know that the exchanges are very vulnerable, so they target them because they often have more money than retail investors and a lot of the time their protection is not as well designed as they would need it to be.
If the industry wants to really move forward, it has to be more concerned with security. Not only money is constantly being stolen from exchanges but also information. Because of this, the exchanges that are not considering upgrading their security are often harming their own customers.
Not only the customers may end up losing their money and the exchange will go bankrupt and not be able to pay them, but the hackers can also often take information that is personal for this people and use it to scam them later or to sell it. In order to create a better crypto market, it’s the time for a change.