White hat bonus payment for hackers. A Good or bad practice?

[Maxicreed]

With almost 1 billion dollars been stolen already been stolen via security exploitation with that of HTX and the Mixin Network as the most recent. The figure may not be alarming when compared to the data of the previous year that saw almost 4 billion dollars stolen.

Most of these successful exploit by hackers are never recovered and for the few that are returned by the hackers; a decent amount of white hat bonus payment is made which imho encourage the proliferation of hacking activities. This age long practice could and is slowing down adoption amongst other factors. Security should be a very important aspect to invest heavily as it has a huge impact on adoption. HTX just announced the paying 250 ETH as white hat bonus for the return of the 5k ETH recently drained from their platform which seems more like a game than a serious issue. Tho, it's a good thing the stolen funds was returned but how long should we continue to be skeptical about some platforms?

It is worthy to note that few exchanges such as Kraken and particularly Bitget have successfully recorded zero incidence of security exploit since their inception which begs the question 'what are they doing right that others aren't doing and why is it difficult to collaborate with those secured platforms to collectively build and have secured platforms? ' cos I want to believe if these platforms are collectively secured, we could experience rapid growth that the traditional financial institution could be threatened.

 

[BashirJasper]

A lot of crypto enthusiast s would say its a good practice so long as those assets are returned and the users are not affected unlike the black hat guys but vices can only be recognized for what they are - they are always inimical to the growth of the crypto ecosystem. So, the solution might not be near but I think with regular update of exchanges security architecture like the good work of Bitget and Upbit in addition to adherence to the industry regulations, we could be heading to crypto-sane world.

 

[okanheei91]

What specific security measures do exchanges like Kraken and Bitget employ that have enabled them to maintain a zero-incidence of security exploitation? Are these measures transferable to other platforms, and why haven't more exchanges adopted them?

 

[vkldau2n8f]

Security breaches in the cryptocurrency space remain a significant concern, and the reluctance to implement robust security measures could indeed slow down adoption and undermine trust in the industry.

 

[okanheiq181]

How can the cryptocurrency community and industry as a whole address the issue of security exploitation and create a collaborative approach to enhance security across platforms? Are there any industry-wide initiatives or standards that could help improve security?

 

[okchoitia82]

While the article highlights the positive track record of exchanges like Kraken and Bitget, it's important to remember that no system is entirely immune to security threats. Is it reasonable to expect zero security incidents, or is it more about minimizing risks and promptly addressing them when they occur?

 

[xantrang8h]

I agree that security is a critical aspect of cryptocurrency adoption, and it's essential for platforms to invest heavily in security measures. The article raises valid concerns about the impact of security breaches on trust and adoption within the cryptocurrency ecosystem.

 

[BashirJasper]

Security breaches in the cryptocurrency space remain a significant concern, and the reluctance to implement robust security measures could indeed slow down adoption and undermine trust in the industry.

I agree with you but I think most big industry player are focused on making the space safer and better for investors confidence and I can see some of this players investing huge resources on improving their ecosystem

 

[Maxicreed]

While the article highlights the positive track record of exchanges like Kraken and Bitget, it's important to remember that no system is entirely immune to security threats. Is it reasonable to expect zero security incidents, or is it more about minimizing risks and promptly addressing them when they occur?

Having a zero incidence of security exploit will obviously scale up adoption but that may not be entirely feasible cos even the traditional financial institutions are not free from security exploit which is why collaboration instead competition could win this fight against hacking and reduce it to the barest minimum as may be obtainable in the traditional financial institution.
The exchanges I highlighted particularly Bitget which is just 5 years old in the industry may have enjoyed their steady growth because of their unique security architecture among other services they offer hence my call for collaboration for the collective growth of this evolving industry.

 

[Maxicreed]

What specific security measures do exchanges like Kraken and Bitget employ that have enabled them to maintain a zero-incidence of security exploitation? Are these measures transferable to other platforms, and why haven't more exchanges adopted them?

That's why collaboration is very important cos technology is transferable but as a user; I understand they have been very innovative with security improvement and one the recent development is their customer protection fund which is currently worth over 350 million dollars.

 

[ImamShaheb]

What specific security measures do exchanges like Kraken and Bitget employ that have enabled them to maintain a zero-incidence of security exploitation? Are these measures transferable to other platforms, and why haven't more exchanges adopted them?

Don't know about Kraken's but ,Bitget is an exchange that has maintained a zero-incidence of security exploitation. It does this by using a variety of security measures, including multi-signature cold storage, KYC and AML compliance, Proof of Reserves (PoR), two-factor authentication (2FA), whitelisting, and risk control.
While these measures are transferable to other platforms, there are a number of reasons why more exchanges have not adopted them, including cost, complexity, competition, and user experience.
Despite the challenges, it is important for exchanges to invest in robust security measures to protect their users and their assets.

 

[ImamShaheb]

While the article highlights the positive track record of exchanges like Kraken and Bitget, it's important to remember that no system is entirely immune to security threats. Is it reasonable to expect zero security incidents, or is it more about minimizing risks and promptly addressing them when they occur?

Bitget: Secure, but not invincible

Bitget is a crypto exchange with a good security record. It uses cold storage, multi-signature wallets, KYC/AML procedures, and regular security audits to protect its users' assets.

However, no system is entirely immune to threats. Bitget has a dedicated security team to monitor its systems for threats and mitigate damage if an incident does occur.

Users should always take steps to protect their own assets, such as using strong passwords, enabling two-factor authentication, and only withdrawing funds to trusted wallets.