Good morning today I’m going to talk about
securing cryptocurrency exchanges.
We saw last week that Bithumb was attacked
and it lost over 31 million dollars.
It raises a very important questions and very
interesting ones as to what are these exchanges
doing to secure
secure them and how and what level of trust
do custom customers have in such exchanges.
So to answer this question, what we did here
is we looked at 22 different cryptocurrency
exchanges all around the
globe and reviewed their White Papers if it
was available or their privacy policies from
The idea was to identify what security features
they have implemented.
Some of these features are not explicitly
mention on them and what Web site, so we had
to dig down into this privacy policies or
in their Whitepapers to pick up of this information.
So in the process of doing that, we end up
developing a short security report or a whitepaper.
You can see the link to the Whitepaper below
In this in this report, what we have done
is we picked these 22 exchanges, reviewed
their documentation and listed
all the different security features that they
So in total, we found more than 50 different
features that were reported on these websites,
and we group them into
14 different categories, such as mechanisms
used for authentication or what was their
database security policy or how were their
databases secured, or what was the network
How were the employees screened before they
started working at these exchanges.
What standards did they comply to, did they
comply with the cryptocurrency security standard,
or the ISO information and data management
standard and so on.
It was an interesting exercise to review
these reports and these websites, their security
features and putting it all together in a
nice report for you all to read and learn
In short, security is a functional requirement
for cryptocurrency stock exchanges, it’s my
It is a very strong opinion because the
financial loss incurred as a result of the
hack on the crypto exchange is enormous, it
You can take an example of what happened with
They had one of the best security mechanisms
in place, but they still ended up losing over
31 million dollars.
So what is it that went wrong.
We’re still looking to get uh full explanation
from Bithumb, but I’m looking forward to seeing
what their responses says.
However, I believe the security features that
we have identified in this report will give
you some insights as to where you need to
beef up your security.
So if you are running a cryptocurrency exchange
or if you’re planning to do, please feel
free to contact me, and we can have a
chat over it.
Thanks a lot and once again have a read of
the report and hope you learn from that.
Thank you very much.