Opinion: Crypto exchanges are vulnerable by design

Representatives of the trading platforms, according to the Bybit CEO, should carefully investigate the options for carrying out attacks.

Digital asset exchanges are inherently vulnerable. This is the conclusion made by the CEO of the popular Bybit platform Ben Zhou, reports Cointelegraph.

According to the expert, many digital asset exchanges are prone to security issues like centralized web applications. One of the common targets of hackers, he said, was the hot wallets of digital asset exchanges. These storages are connected to the network, which means that fraudsters can use various connection options to directly steal funds. Cold wallets, according to the specialist, allows you to increase the security of storing funds due to a permanent Internet connection.

Bybit’s position among digital asset exchanges, where you can work with derivatives. Data: CoinMarketCap

The exchanges need hot wallets for the convenience of their use – for quick settlements. Carrying out similar operations from cold wallets can take longer, which is unacceptable for traders and other market participants, whose income directly depends on the speed of response.

Ben Zhou believes that the team of digital asset exchanges should pay more attention to security: investigate potential threats, conduct audits, and prevent data leaks. He also paid attention to the fact that many startups develop technical solutions that can eliminate some potential threats.

According to Ben Zhou, one of the precautions could be working with “white” hackers. Their task is to identify possible scenarios for hacking the platform for a reward.

Bybit CEO shared his opinion on how to safely operate trading platforms especially now when the popular digital asset exchange KuCoin was hacked. According to the representatives of the project, hackers managed to withdraw cryptocurrencies from the hot wallets of the site. The media reported that the damage could exceed $ 150 million.

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