Every Exchange gets hacked?

By groveguy | Sikander Raza | 25 Jan 2019


Well, nothing new to know but you'll be devastated by the facts to what levels have hacking achieved in crypto world. It is surprising to know that a lot of these incidents are not even reported or made public by the exchanges but I’m sure you'll be surprised to know that every single day on an average exchanges get hacked for around $ 2.5 million, yes that is correct. In an interview to @cryptomanran from CNBC crypto trader at the year’s first largest Conference 'The north American Bit coin Conference',  Founder of Hoso.io Hartej Swahney who himself is a Hack Proof Engineer explained how exchanges get hacked via different methods and they don't report it.

So can we say is hacking proving itself to be a big Barrier in the expansion of this industry, YES. Not only hacking but people not learning to hold their Private Keys and exchanges not going through the regular process of penetration testing from Cyber Security Companies. These flaws don't help Crypto hitting the main stream. So the question that comes to mind is that ‘why don’t they report it’? Well, for starters no business would want their customers to know that it is not safe OR that their crypto can be stolen because they are not undergoing a process which is highly recommended regularly but hey! It’s not just crypto world that gets hacked every day in fact every big organization including Banks and Governmental Organizations get hacked but the hacked possession over there is DATA while in crypto it is MONEY.


It is totally not comforting that exchanges where we put our money on to trade or HODL are that easy. Mr. Swahney went on to share one of the incidents how an employee of a Bit coin exchange became the victim of losing sensitive information to the hackers as they played him the ‘low hanging fruit’, this employee was interested in competitive dog walking so they created a fake website and emailed him the details of a Dog walking competition to which he applied losing the Key strokes through which the hackers gained the user name and passwords to break in and the Exchange lost millions of Dollars within 48 hrs.



Is there a Solution to It?

Of course, exchanges need to do a better job of communicating with each other as we know bit coin is traceable ‘Chainalysis’ is a company that tracks Bit coin and they are doing it for the Governments. They can be made good use of and track the transactions so that $BTC can get out of these petty issues and hit the main stream. Also there is another concern certain exchanges are not doing KYC under 3 $BTC which is not helping. Up till now 1.5 billion Dollars have been stolen from exchanges costing people like you and me a lot of MONEY with that said I hope you take all the precautionary measures and Trade Safe!

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Sikander Raza
Sikander Raza

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