Crypto & Security: Case Crypto Exchange Bitkoex
There is no solution for stupidity
Story
Recently, he an man employed of Bitkoex,
a small South Korean Exchange that targets the niche market in the local cryptosector,
for reasons that still remain unknown,
released valuable $ 650,000 customer information, including valuable information such as private and public keys, the amount in the accounts, and the account owner's name.
source
All this in a group chat with KakaoTalk (the most commonly used messenger in South Korea with 90 percent market share without additional encryption capability, known for its simplicity - unlike Signal or Telegram that have end-to-end encryption options that enable users to send and receive information that can self-destruct).
After the first nonsense comes the other ( part II )
After releasing the private keys of users and after it had known that user funds were in jeopardy, Bitkoex the exchange did not bother to move existing funds out of the vulnerable wallets to a cold storage.
Comically - Stupid - Or something third
Discusion
The Bitkoex security breach was not a result of a hacking attack or a phishing attack; but rather the controversial decision of the exchange to release user information in an unencrypted and unsecure group chat.
Tragicomedy
In May, Bitkoex promised its users that it had integrated a “security system that is on par with leading financial institutions in the traditional finance system” and it had implemented a high-quality standard of securing user information, account data, and funds.
No regulation or security standard can prevent an exchange from disclosing the private keys of users to the public.
This is a result of sheer stupidity and the company’s lack of desire to protect user data.
Conclusion
No employee should have the authority to release the private keys of users to outsiders and to individuals that are not related to the company.
This case is a good warning
After this circus the criticisms were launched at the account of "small" exchanges.
Critics point out that small and medium-scale exchanges in South Korea do not provide any budget for security and infrastructure development, leaving user funds and information vulnerable to security breaches.
Small stock exchanges spend resources in business expansion rather than increased security.
All this is not black and white but obviously there is a lot of truth in it.
Great "exchanges" are endangered by this behavior.
Why?
For new end users all exchanges are the same or similar.
But they are not!
Yourself,
the difference between the exchangs should be checked by the users before entering the arena.
Someone has played them, otherwise how can an exchange can ruin the running business.
No one normal will not destroy itself.
But this is a "simple" failure in the house.
They had to make sure that an individual could not get such information and use them as he wanted.
Yes, I agree with you. They have failed to maintain the security, faced a huge loss as a result.
@crypto-mammoth, I gave you an upvote on your post! Please give me a follow and I will give you a follow in return and possible future votes!
Yes.
There is no remedy yet for stupidity.
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