The new year 2019 witnessed the first cryptocurrency hack, last week. Cryptopia, a New Zealand based company was hacked and the reports say that nearly $2.5 million worth of Ethereum was stolen. Initially, Crptopia shut down the service once it detected the hack by stating the reason as a technical glitch. It confirmed the hack on January 13th,2019.
Cryptopia trades daily around $2 million of cryptocurrency and the miscreants hacked only to steal that much amount of cryptocurrency.
Though the attack happened on 13th Jan, Cryptopia didn’t disclose information about the hack. Customers outraged in twitter for the shutdown of the service for two days. It is to be said that 19,390 ethereum is transferred without authorization.
Soon after the hack, the exchange firm informed the police about this who considered this to be a “major crime”. All 535 cryptocurrency trading pairs are suspended until the investigation is done.
Members from the more extensive crypto-network are recommending the hack could be a conceivable “Exit Scam” allowed the 48-hour “support” period and are bringing up the robust ether exchange as one potentially led by Cryptopia’s group. CNBC anchor person Ran Neuner additionally scrutinized the trade’s dreary security rehearses. He also addressed further about whether Cryptopia clients would be discounted for their misfortunes because of trade’s ineptitude.
There is a doubt that the hack has been conducted internally. Therefore, Binance CEO Changpang Zhao suggested to users to store the digital assets in legitimate exchange firm. He said that every exchange firm should have high quality and standard firewall system for there trading transaction. Many major exchange firms have fallen victim for the hackers. Users should look for the standard security of the digital of any exchange firm before the investment.
How Such Hacks Can Be Avoided?
There are many ways to reduce digital asset robbery. Firms/users can use the offline wallets and hardware systems for the storage and tokenization. Traders have better options like “Gemini” which is giving insurance for digital assets. Users have to make sure that only the amount of cryptocurrency required for the ongoing transaction to be kept in the online wallet.