Mon, Jul 16, 2018

Cryptocurrency Exchanges Are Getting Hacked Because It’s Easy

$1.63 billion – That’s how much cryptocurrency exchanges, initial coin offerings and other digital-currency platforms are said to have suffered in hacking-related losses since 2011. This year alone, four of seven hacks have occurred in Asia, with over $800 million worth of cryptocurrencies stolen. What makes exchanges, particularly those based in Asia, so vulnerable to hacking?

The fact that cryptocurrency exchanges store actual currencies (unlike conventional securities exchanges) makes them highly attractive to hackers. Inadequate cyber defenses that are not keeping up with rapid industry growth makes them irresistible. And according to Kroll Managing Director Stacy Scott, gaps in regulatory enforcement are making “it less compelling for exchanges to step up security efforts.”

By Steven Russolillo and Eun-Young Jeong

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