Bitcoin Forum

From the moment I start with bitcoin, I already know some exchange has been hacked the latest now is the Coinrail and Bithumb in Korea why a trading platform like this did not put an extra security measure?

https://techcrunch.com/2018/06/19/korean-crypto-exchange-bithumb-says-it-lost-over-30m-following-a-hack/

What kind of security measures? The only thing I can think of is storing most of the funds in cold storage which I believe most of the exchanges are doing now but since Bithumb is a big exchange, the hot wallet contained a lot of money. An exploit can be found in any system. If the users themselves don't care about their funds (that's what leaving your funds stored in an exchange means), why would Bithumb or any other service care? If you don't have control over your private keys = you don't have the coins.

it is hard to determine to whether its a hack me scam or not let the expert handle the situation to probe if it is a scam or not.

Actually there are now many digital hackers in the world now. Now this hacking has become a serious problem in this digital world. It is very hard to track the hackers and bring in to the court of law. But investors of this market should be very careful regarding the security of their wallet. Moreover exchanges need to make their security strong.

I totally agree with your point of view. If you do not own a private key, it means that it is not yours. Large trading exchange can not keep them safe at all the time.

Making an exchange secure is a lot harder than you think.

It's not like you just sort of install an extra security measure then you're good forever. Nope. Though I don't know if how seriously they take their security, making such site is definitely difficult to make secure, knowing that you're frequently being targeted by hackers. Not only that, you'd need to be always updated on the new exploits that can be used against your site.

Writing secure and complex software is very hard, so every piece of nontrivial software in the world has some vulnerabilities. But finding those vulnerabilities is also hard, so often times they remain undiscovered, but with exchanges and some other systems there's a big incentive to find them because it allows hackers to steal money. And with crypto this incentive is the strongest, because it's very convenient to immediately get cryptocurrency that can't be rolled back or even traced, unlike fiat. So, I think most exchanges have pretty good security measures, but they are not perfect, and its often enough to have just one vulnerability to compromise the system.

Creating a secured website is difficult due of even your created website have lots of security hackers always make a way to hack websites, nowadays the technology rapidly growing and also the hackers improves their technology to hack even the most secured or popular websites they could possibly hack.

According to some reports, this recent hack has nothing to do with Bithumb security measure. The reason for hack is still under investigation. But there is a news that malicious emails were sent to Bithumb users which directed them towards a phishing page and this led to the security breach. Regarding big exchanges not doing much about the security, Bithumb spends $9 million annually on security measures. This is online space, with such a large volume and user base, sometimes security becomes difficult.

they should care because they're responsible for them while they're in their wallets. It has never happened to Coinbase for example, so it's important to choose the right exchange

it is mostly a case by case basis! obviously all of the exchanges have some sort of security measures in place. some stronger than others specially the big ones handling a lot of money every day.
hacks do happen all over the internet. it is not just bitcoin exchanges that get hacked. a lot of different services get hacked also. i remember last year Yahoo send me an Email saying their database was hacked a long time ago and they found out about it just then after a long time!
but also sometimes some exchanges are just not honest and they scam their users and then call it "hacked"

Who says they don't care? Do you think they actually want to get hacked? Getting hacked gets their public image destroyed. It does a lot more harm to them than to their users(dependingon how much is in your account).

Sure. It has never happened to Coinbase. YET. Not saying it will happen to them, but it's VERY VERY possible. Guess what? People in the past also thought MtGox was also very secure. Probably the same way how people look at Coinbase right now.

Guess what happened to MtGox? https://en.wikipedia.org/wiki/Mt._Gox#Withdrawals_halted;_trading_suspended;_bitcoin_missing_(2014)

I agree wih you that they should provide extra security to stop hacking because it has made everyone's life miserable.Also they should thake proper steps to trace those hackers to give them proper punishment.

Actually creating prefect security is almost impossible, because technology growth from time to time, likewise hacking or cracking technology.
Obviously, they put extra security in their systems. But my teacher said everything that connected to internet is not safe.