Congress should have passed common sense crypto exchange rules … such as exchanges can’t custody assets (like the rukes for regular brokers) like 4 years ago. Pathetic.
It's not that crypto exchanges have poor security. If anything they have more security than regular financial institutions. But it's the fact that there is really no need to hack a financial institution because you wouldn't get away with it. It's completely pointless. Over the years security has gotten a lot better on crypto exchanges. And when you do hear of a hacking it's usually not even the whole exchange. And even then its risky because law enforcement is getting better at finding out who the hackers are
Back in my working days... when I did security consulting -- there was a mindset that the best customers were banks. Why? do you ask. It's because banks spent much more on network & server security and governance than insurance firms, government, healthcare or any other sector. In fact, banks seemly poured an endless amounts of money into security. No other sector came close. Hence the rates paid by banks for security and infrastructure projects were much greater and the projects were longer. They did not skimp on money. As the old expression goes "Why do you rob banks?" "Well, that's where the money is at". The network and server security at crypto exchanges is not very robust. In fact, many expert reports have labelled the security practices across the crypto industry as unacceptable and failing. Is it improving over time? Yes. But it has a long way to go before being compliant with even the basic level of industry security practices. Whether it is an entire crypto exchange or a single account -- a breach is a breach. If hackers can do it to one account then they can easily do it to a second account (assuming the security flaw is not addressed quickly).
I will say though that this Bybit hack was something else. In ETH world, things are different. The CEO was the last one to approve the transaction, and apparently the address where it was sent to all looked good, so even he got fooled. The issue was with the underlying smart contracts or something that actually hid what was happening. It is apparently infinitely more complex what happens behind the scenes when sending ETH vs. BTC. Even if the addresses match up, it can still go somewhere else... at least that seemed to be my take away!!!
Network and server security for a financial institution does not only involve your physical equipment and software to protect your assets. it involves your governance - how you perform operations, who must do what approvals, how approvals are checked, how identities are validated to be correct, and many other governance oversight factors.
[/COLOR] Not nessacerily... It would depend on how the hacker was able to hack someones account. Most people think that hackers are all computer experts that know computer programming and have sophisticated technology to break through anything.... No, not at all... Most of the time all they do is find ways of gathering someone's sensitive information, and use it to access someones crypto exchange account. It's very simple. And normally, these kind of low level hackers only hack 1 account at a time. This is nowhere to the extent of hacking an entire exchange, that is computer expert territory. And there is a high chance this last hacking was from the North Korean group.
BYBIT means bye bye to your Bitcoin. Fortunately/Unfortunately, this hacking event didn't cause mother-of-all-Tulip mania.
Will the $90K support band hold? Usually, when there the coins disappears, investors treated it as a trivial matter. But this time, the investors are taking concrete actions.