$ 731 million stolen from trading platforms in 2018, can these breakthroughs be prevented?

- ChemetTrace for the security of the Blockin said that $ 731 million of digital currency was stolen from the digital currency trading platforms during the first half of 2018.

Last year, digital currency platforms recorded about $ 266 million in losses from security breaches. While the first half of 2018 tripled the amount stolen from trading platforms in 2017, prompting investors to consider concerns about security measures implemented by the digital currency platforms.

Weak regulation in the digital currency sector

Two of the biggest breakthroughs in the digital currency platforms in 2018 were $ 500 million in the Coincheck platform and $ 40 million in the Korea's Coinrail platform. Both platforms store a large amount of their currencies in portfolios connected to the Internet, rather than offline portfolios.

As soon as hackers reached the systems of Coincheck and Coinrail, they immediately stole hundreds of millions of dollars of digital currency without hindrance. The Coincheck platform later recognized its breach, and the $ 500 million security breach was the result of a lack of talented and experienced developers working on the platform's security systems. Koichiro Wada, CoincheckCEO of  Platform, said in an interview with Bloomberg:

"We were aware that we did not have enough people working in internal audit and risk management. We sought to expand to attract the infiltrators and agencies involved, but we ended up in such a position "

The statement was issued after a controversial news conference on the piracy attack that prompted investors to fret over the company's position on its infrastructure. Just days after the breach, Coincheck held a press conference to determine the future of the company and how it will be used to deal with the security breach. As the CCN previously reported, Yuji Nakamura, a technology reporter in Japan, said the Coincheck platform claims that NEM is the only one affected and that the coincheck platform is planning to continue. But has not yet decided how to pay the customers. It does not use multiple signature technology and will not recognize that security was weak. Not sure how to penetrate the platform.

Essentially, investors were angered by the fact that the platform did not know how the breakthrough occurred, its failure to use multiple signature technology to secure users' money, and its reluctance to acknowledge that its security was weak.

On the other hand, "Coinrail", which was previously the fifth largest digital currency trading platform in the South Korean market, admitted after its breakthrough that it did not have the resources and developers to repair and improve its security system.

How to prevent break-ins in the FX platforms?

Japan and South Korea, two countries with the biggest security breaches in 2018, have already begun implementing strict regulatory policies to set industry standards for the security of their digital currency platforms. The South Korean government has chosen to organize these platforms as banks, giving local financial agencies the authority to monitor and monitor trading.

Under tougher regulations and strict surveillance of platform security systems, authorities in Japan and South Korea expect security breaches in the digital currency sector to decline over time.