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Security Report Points Out Protection Flaws At Many Major Exchanges

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Wed, 10/03/2018 - 17:09
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  • 54% of Cryptocurrency Exchanges have poor security: what they do not tell you

Cover image via U.Today

On Tuesday, Oct. 2, ICORating published a report on exchange security. The ICO listing and analysis site revealed that even the world’s highest ranked crypto exchanges by trade volume have major security defects.

“Over the past 8 years about 31 crypto exchanges have been hacked and more than a 1 billion dollars (actually, $1.3 bn) stolen,” stated the report.

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The report analyzed 100 exchanges with the daily trade volume of over $1 mln on various criteria, including user and web security, console errors and registrar/domain security.

It turned out, that 32 percent of exchanges have code errors that could “lead to certain defects in operations.” 41 percent allow passwords consisting of eight digits or less. Majority of exchanges failed in terms of web security, failing registrar or domain security as well as web protocol security.

Only 46 percent of exchanges meet all four parameters. Bitstamp, being one of the top exchanges by trade volume, scored only 37 points out of a possible 100. Coinbase Pro, Kraken and BitMEX scored the highest — with 89, 80 and 78 points respectively. OKCoin scored the lowest, 15 points.

“Still nobody is fully protected from the loss of their crypto assets; therefore, invest in reliable assets, diversify your portfolio and choose good crypto exchanges,” the report summarized.

About the author

Paul Hackley is a journalist and essayist, focusing on blockchain and cryptocurrencies, with a strong interest in the future of the technology.

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