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Insufficient Security Framework, The Reason Why Hack Cases O...
Cryptocurrency News, Exchanges, Markets

Insufficient Security Framework, The Reason Why Hack Cases On Exchanges Still Exist Today – Research Finds

The result from a research published by ICORating on the 4th of October stated that the majority of the top cryptocurrency exchange platforms have insufficient security framework, which is why a lot of exchanges are still likely to fall prey to hackers.

According to the report, these hacking attacks took place because of poor security on the part of the affected crypto exchange platforms.

The year 2018 witnessed a couple of major hacking attacks. The year began with the Coincheck exchange hack in which more than $500 million in NEM tokens were stolen by hackers. Later during the year, crypto exchange Bithumb, Coinrail and more recently Zaif also became a victim in the hands of cryptocurrency hackers.

While embarking on this research, 4 main criteria were put together in an attempt to catalog the respective security weaknesses and strengths of these cryptocurrency exchange platforms and were placed in their order of importance: User account security, code errors, web security and domain security. The field of inquiry was limited to exchanges that recorded average daily trading volumes that exceeded $1 million.

Within these few years that blockchain technology came into limelight (Talking about 8 years back), there have been about 31 cases of hack on cryptocurrency exchanges and more than 1 billion dollars have been stolen. While some of the exchanges learned from their mistakes and managed to recover, there were others that went bankrupt. Some of these exchanges like Bitcoinica, PicoStocks, Mt. Gox and Bitcurex fell prey multiple times.

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