Bybit CEO Ben Zhou said that the recent KuCoin hack shouldn’t be surprising – cryptocurrency exchanges have vulnerabilities simply by their nature.
Zhou emphasized that exchanges act as a single point of failure for the cryptocurrency industry. Like any centralized web application, exchanges are subject to the same problems as other websites. And security becomes even more important, because the funds of investors and traders are stored on exchanges.
Most cryptocurrency exchanges store users’ funds in hot wallets, but Zhou believes the cold wallet system is much more secure. The only problem with such a system is the longer process of withdrawing large amounts.
Bybit’s CEO emphasized that investing in site security should be a top priority for any cryptocurrency exchange, especially if a hot wallet system is used. Dealing with potential breaches requires better vulnerability detection and multi-tiered security testing.
“We need to apply the best security practices, hire recognized experts to test the site, and conduct campaigns to reward hackers for discovering vulnerabilities,” Zhou said.
Zhou did not fail to emphasize the security system of its own site – according to him, the Bybit exchange has invested significant resources in the security of its protocols and solutions. In addition, the funds of the exchange clients are stored in a cold multi-signature wallet. When withdrawing funds, the site conducts a three-level risk check.
Recall that on Friday, September 25, one of the hot wallets of the KuCoin exchange was hacked . The attacker managed to steal more than $ 150 million worth of crypto assets, although a significant part of these funds was returned thanks to the assistance of various companies and projects.