Most crypto exchanges are vulnerable by design, says ByBit CEO

gepubliceerd op by Cointele | gepubliceerd op

Crypto exchange security is once again in the news after hackers breached KuCoin.

This shouldn't surprise people as exchanges are vulnerable by design, according to ByBit CEO Ben Zhou.Zhou told Cointelegraph that exchanges act as a single point of failure.

As a centralized web application, exchanges are susceptible to the same security issues as all other websites.

Security becomes even more important as investors and traders are increasingly taking exchanges to task to protect funds.

The vast majority of crypto exchange servers and storage networks, Zhou said, keep digital currencies in hot wallets.

According to Zhou, investing in security should be one of the highest priorities on an exchange platform's agenda, especially if it operates online.

To combat potential hacking threats, exchanges also need to better address vulnerable areas and apply multiple security layers for penetration testing.

Zhou also recommends cryptocurrency exchanges work with reputable security firms to carry out security audits, apply strict management processes, and invest in zero-trust architecture.

He said there are several bespoke security solutions from third-party vendors that exchanges can use but noted these could also be developed in-house.

As Cointelegraph previously reported, the recent crypto twitter hack was a wake-up call for centralized platforms to address online security issues.

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