Interesting discussions transpired when centralised and decentralised crypto exchanges, lawyers, an investor, and a blockchain platform were put together in the same room and forced to talk to each other about crypto security threats for an hour.
Author: Wang Yanhua
In light of recent high-profile hacks of prominent cryptocurrency exchanges, Block Asia centered its third meetup (you can watch the full livestream here) around the theme, “Rise of security threats in crypto exchanges”.
Founder of Block Asia Ken N said, “For typical crypto events or gatherings, projects who are presenting would just be promoting their own ICOs. We want to do something different and organise a session where people can learn.”
Security has always been a pressing concern in the world of cryptocurrency and blockchain. Uneasy questions have emerged in the wake of a slew of hacks about the current security environment of crypto exchanges.
Uncertainties about what investors can do if their funds are lost, if anyone can be held accountable in the event of a hacking, and what courses of action should crypto exchanges take if they are hacked are common and valid.
This is especially so as accurate and reliable information is hard to come by in the industry.
Wu Xing, senior director of Huobi Pro, shared how Huobi protects users’ security. She explained that Huobi adopts measures such as storing 98% of assets in cold wallets, having regular security testings by professional third parties, and having a 20,000 Bitcoin reserve in the event of an extreme security accident.
Gaven Zhou, a prolific investor from BlockOrigin, shared tips on how fellow investors should protect themselves from losing funds to hackers.
Michael Ran, an engineer from Stellar, explained to the audience how the crypto hacks happen.
Lawyers from Dentons Rodyk Hsu Li Chuan and Shobna Chandran, Cathy Zhu from Digifinex, and Lance Cheng from NEM joined the panel discussion afterwards.
It was a panel well-positioned to discuss security threats in crypto exchanges, with voices from both centralised (Huobi and Digifinex) and decentralised (Stellar) exchanges, lawyers, an investor (BlockOrigin), and a blockchain platform (NEM).
During the panel discussion, Wu Xing suggested that investors should file a police report if their funds are hacked. That raises the question of whether calling the police is effective and hackers can be held accountable to the law.
Shobna Chandran said, “Calling the police helps to some extent as the police can investigate and find out who is wrong and who can be charged. But it still does not get your money back.”
She mentioned that even if the hacker’s identity is uncovered, it may be difficult to get the hacker extradited as well.
Roy Lee, an attendee, told Block Asia, “This was a very different event. I really enjoyed the clash of ideas and perspectives during the panel discussion. It was really exciting and refreshing. I definitely learnt a lot.”