Bybit exchange CEO Ben Zhou said that we should not be surprised by the recent hacking of KuCoin – cryptocurrency exchanges have vulnerabilities simply by their nature.
Zhou stressed that exchanges act as a single point of failure for the cryptocurrency industry. Like any centralized network application, exchanges are subject to the same problems as other websites. And security becomes even more important, because the exchanges store the funds of investors and traders.
Most cryptocurrency exchanges store users ‘ funds in hot wallets, but according to Zhou, the cold wallet system is much more secure. The only problem with such a system is the longer process of withdrawing large amounts.
The CEO of Bybit stressed that investing in the security of the platform should be the highest priority of any cryptocurrency exchange, especially if a system of hot wallets is used. To deal with possible hacks, it is necessary to better detect vulnerabilities and conduct multi-level security tests.
“We need to apply best security practices, hire recognized experts to test the site, and conduct campaigns to reward hackers for detecting vulnerabilities,” Zhou said.
Zhou did not fail to emphasize the security system of his own platform – according to him, the Bybit exchange has invested significant resources in the security of its protocols and solutions. In addition, the exchange’s clients ‘ funds are stored in a cold wallet with multiple signatures. When withdrawing funds, the platform 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 crypto assets worth more than $150 million, although a significant part of these funds was recovered thanks to the assistance of various companies and projects.