Five after the largest in the history of theft of bitcoins with cryptobiri Mt. Gox. This event became the first major precedent, which attracted the attention of the public to the vulnerability of cryptoacive protection systems. After that, the market participants regularly began to report to enhance the security of services. However, hacking stock exchanges and wallets did not stop. In the article, we deal with what has changed over the years in the field of protection of cryptoaculations.
February 25, 2014 Mt. Gox, one of the largest cryptocurrency exchanges at the time, officially announced the stopping of its work. The reason for this was the leakage of the company’s internal information, according to which, as a result of a series of theft, more than 744 thousand bits or $ 350 million at that time were lost. After further proceedings, it was found that more than 850 thousand HTS were lost from the trading platform accounts, which is now almost $ 3.3 billion.
It turned out that thefts had already happened for several years, but the leadership did not focus on this attention and did not report users. However, after another hacking, the company simply became insolvent. Although on March 20, the Director General of MT. Gox Mark Carpeles announced that he found 200 thousand bitcoins at one of the old addresses, which were considered missing, but the remaining 650,000 VTS users were missing.
In addition to the loss of investors, the opening of the criminal case on the head of the Exchange, which threatens him with a ten-year deprivation of freedom, the news led to a sharp collapse of the BTC course by 36%, since by that time the platform accounted for more than 40% of all cryptocurrency network transactions. Recovery required for a whole year. The court decision on this precedent will be accepted only
Crash Mt. GOX caused a powerful public resonance and cryptosocommunity began to be actively interested in the level of protection of other stock exchanges and services, as well as more closely to the safety of own digital assets. Companies have begun to use various cold storage technologies to accommodate users’ funds, regularly improve their protection protocols, integrate PM / FT mechanisms, oblige customers to undergo KYC procedures, set delays to the withdrawal of funds and cooperate with law enforcement agencies.
Despite this, over the past five years, the number of successful cyber attackers is only growing, and the hackers continue to steal millions of dollars from investors and traders who have trusted their cryptoacivities to careless companies. During this period were hacked
According to official data for 2018, as a result of hacker attacks, a virtual currency was stolen from cryptocurrency exchange approximately on
Viktor Pershikov, a leading analyst MINE cryptocorporation, believes that hacking Mt.Gox in the root did not change the situation with centralized stock exchanges, since even taking into account the steps for the protection of platforms and hot wallets from hacking, they are not safe due to the high risk of capital concentration In some hands. According to him:
«Despite the attempts of shopping sites to strengthen protective functions, the fact of centralization is a achilles fifth contrary to the logic of the blockchain. That is why leading stocks, such as
Currently, even despite the presence of a large number of trading platforms, and their competition among themselves, the choice for traders and investors is not as wide as it may seem, it is in the light of their centralization. Decentralization will not only allow participants to perform operations directly with each other, but also practically reduces potential risks for the exchange themselves, since they will not have any attitude to the means participating in transactions, but will act as information intermediaries.
Member of the expert council on the digital economy and blockchain technology of the State Duma Venus Shaydullina says that at the moment many participants express not the best opinion about centralized resources. In this matter, it adheres to the point of view of the famous expert of Neytan Sexthan, who claims that the trade without risks in the modern world cannot exist, but the trader should not bear any other risks except those that he is already ready to accept.
Also, the expert in his work leads the principle of education and functionality of centralized stock exchanges, focusing on the fact that they usually do not interact with the blockchain, that is, transactions are not recorded in the distributed registry, which in itself is a highly adjacent enterprise.
In parallel, platforms are developed for direct exchange of various cryptocurrency directly between blocks with
«When using decentralized solutions, the security issue is reduced to the stability of the network itself, and not to how the exchangers of the exchange can solve the problem with holes in the code, and the owners — to prevent inside, on the basis of which most hacks occur
Even with the ideal security system, the human factor cannot be excluded. As an example, you can cite the QUADRIGACX stock exchange, the founder of which died, without leaving information about access to cold wallets, which kept customer assets. As a result, they are experiencing problems with the derivation of funds, and are submitted judicial claims.
The growing number of victims of the fraudsters and their lost funds, and interested governments of many countries. Some of them were prohibited by the turnover of cryptocurrency, but most tightened the requirements for cryptoinductrust companies and implement the norms of legal regulation of this sphere. Japan even legalized it to bring out of the shadows and simplify control.
Regardless of the measures taken, all governments insisted on the strengthening of protection systems and raising the level of responsibility to customers. Now international institutions seek to bring the work of the market cryptocurrency to single standards, bringing them into the level of traditional financial activities.
Hacking Mt. Gox attracted not only investors and authorities, but also hackers. Fraudsters realized that the specificity of digital currencies simplifies their theft, laundering, concealing the traces of their communion and output. In addition, this case allowed to see how profitably a hacking of centralized platforms.
Any innovation does not guarantee absolute security, but only gives extra time. Although this problem concerns not only crypto industry, but also traditional capital. Material money has been existing for thousands of years, but, despite all the invented methods for storing and protecting in any form, they are still continuing to steal them.
So far there is no universal mechanism that could guarantee the absolute protection of funds from theft. Nevertheless, the blockchain significantly brought humanity to solving this problem. Now the technology is at an early stage of development, but with global use, it is capable of typing all transactions, making any actions with transparent and monitored.