Can we suffer at some exchange due to some of their services' breach?

joniboini

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Quote from: sheenshane on December 20, 2022, 10:15:01 AM

I think that's not a greedy habit, looking and finding a way how to save fees is a wise move.

I also think this is true. Your average joe doesn't move their funds regularly because they simply want to save some fees, I don't think that is really greedy behavior, just how people would normally do if they put some trust in exchange. Things might change if they get destroyed by "scam" exchanges like FTX though, so they would learn the hard truth eventually.

I think people should give DEX like Bisq a try if they just need to trade once in a while. It might be a bit more expensive than your regular exchange, but it should give better control over their funds. It is almost impossible to distance yourself from an exchange platform entirely if you are a daily trader, so I don't think we can remove this risk entirely. This might sound like a broken record but the only way to reduce the risk is just to store the money you can afford to lose on exchange if you use them regularly. Store most of your money offline.

sheenshane

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Quote from: 2double0 on December 20, 2022, 09:01:57 AM

One consequence is also true that someone cannot or do not move their coins due to the fact that they have the money there due to their trading habits, and one major reason for which they do not move their coins out from the exchange is the fee they are charged every time, so they keep their money to fulfill their greedy habit of their everyday trading.

In this case, we should choose the right exchange where to entrust our money.
One of the reasons why they don't move their coin into non-custodial wallets is that there's a fee for every transaction they have, but isn't really a good idea to let your coins sleep on the exchange wallet.

I think that's not a greedy habit, looking and finding a way how to save fees is a wise move.

That's why when an exchange gets hacked or compromised, they freeze all accounts and didn't allow users to withdraw their funds. It will surely be really frustrating that will others will create a massive panic. Then, it's us who will suffer when there's a security breach on the exchange.

2double0

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Quote from: Adbitco on December 19, 2022, 03:35:22 PM

Quote from: KingsDen on December 19, 2022, 11:37:29 AM

Quote from: Adbitco on December 18, 2022, 12:55:22 PM

~snip~

And the funny part of this is that anyone that works in cryptocurrency industry I mean who earns a living in cryptocurrency will definitely need to convert bitcoin to Fiat or Fiat to bitcoin or from one coin to the other.
So I do not blame anyone keeping their money in exchanges. Exchanges are not what we can totally avoid. Exchanges are part of the cryptocurrency industry. Maybe we should tax the exchanges to always be reliable and avoid some shaddy deals and conspiracy.

Another great advice will be to tell bitcoiners not to leave a huge part of their money in exchanges. Leave only tradable coins and convertible coins. We shouldn't try to use the exchanges as our private wallet.

This is absolutely true mate but something should be put in places. Both DEX, CEX they are not reliable anymore.
The fact is we are too over confident with these exchanges so what is better of is after trade is carried out we should quickly move out our funds to a trusted and reliable wallet this is the only way i think those grammars could stop. I had a friend of mine who don't believe moving his money to a self costudian wallet and when the effects on FTX came up, he almost collapse and was rushed to hospital. So this is the disadvantages of keeping funds on exchanges.

One consequence is also true that someone cannot or do not move their coins due to the fact that they have the money there due to their trading habits, and one major reason for which they do not move their coins out from the exchange is the fee they are charged every time, so they keep their money to fulfill their greedy habit of their everyday trading.

Adbitco

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Quote from: KingsDen on December 19, 2022, 11:37:29 AM

Quote from: Adbitco on December 18, 2022, 12:55:22 PM

~snip~

And the funny part of this is that anyone that works in cryptocurrency industry I mean who earns a living in cryptocurrency will definitely need to convert bitcoin to Fiat or Fiat to bitcoin or from one coin to the other.
So I do not blame anyone keeping their money in exchanges. Exchanges are not what we can totally avoid. Exchanges are part of the cryptocurrency industry. Maybe we should tax the exchanges to always be reliable and avoid some shaddy deals and conspiracy.

Another great advice will be to tell bitcoiners not to leave a huge part of their money in exchanges. Leave only tradable coins and convertible coins. We shouldn't try to use the exchanges as our private wallet.

This is absolutely true mate but something should be put in places. Both DEX, CEX they are not reliable anymore.
The fact is we are too over confident with these exchanges so what is better of is after trade is carried out we should quickly move out our funds to a trusted and reliable wallet this is the only way i think those grammars could stop. I had a friend of mine who don't believe moving his money to a self costudian wallet and when the effects on FTX came up, he almost collapse and was rushed to hospital. So this is the disadvantages of keeping funds on exchanges.

Eternad

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Quote from: robelneo on December 19, 2022, 09:01:29 AM

There's always a domino effect because every project is interconnected to one or many projects and every negative issue will have an impact on the market, so check the platform where you store or invest your money, not only know who manages it, and where they are affiliated.
Take the case of FTX because of their collapse Voyager Digia and Celsius become casualties not only these two there are many others check out this article
The FTX contagion: Which companies were affected by the FTX collapse?

This is correct. Crypto projects usually diversify investment on different crypto projects when there own project is already settled and working properly. And this investment will hurt companies that has exposure on money of fallen company since they will need to pull out there investment and liquidate it to fiat to gather funds for bankruptcy filing or restructuring of the company. This creates the chain effect on crypto space especially if the company funds is more on liabilities.

Tracing the company level of exposure is very hard to determine that’s why even a strong company can bankrupt instantly once there major investors pull out there shares because they will insufficient funds to cover there operation cost.

KingsDen

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Quote from: Adbitco on December 18, 2022, 12:55:22 PM

What i always said is that as a smart user over here, if you are not trading or converting your to fiat or from fiat to cryptocurrency don't leave your funds on exchange. It's always says "Not your key not your money". Keep in mind that FTX and many other security breaching today are not just emanating recently so apply wisdom and know where to keep your funds.

And the funny part of this is that anyone that works in cryptocurrency industry I mean who earns a living in cryptocurrency will definitely need to convert bitcoin to Fiat or Fiat to bitcoin or from one coin to the other.
So I do not blame anyone keeping their money in exchanges. Exchanges are not what we can totally avoid. Exchanges are part of the cryptocurrency industry. Maybe we should tax the exchanges to always be reliable and avoid some shaddy deals and conspiracy.

Another great advice will be to tell bitcoiners not to leave a huge part of their money in exchanges. Leave only tradable coins and convertible coins. We shouldn't try to use the exchanges as our private wallet.

robelneo

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Quote from: 2double0 on December 15, 2022, 09:46:11 AM

This shows that sometimes, even not being guilty, the place where we put our trust and money may get compromised due to the services it is using or attached to, same as in this case where Gemini was not at fault but the third party vendor got hacked and there was a huge data breach of that exchange. Should we worry on every small aspect now that we know that these places are also vulnerable to get attacked not directly but indirectly through the services or various other departments they are involved with?

There's always a domino effect because every project is interconnected to one or many projects and every negative issue will have an impact on the market, so check the platform where you store or invest your money, not only know who manages it, and where they are affiliated.
Take the case of FTX because of their collapse Voyager Digia and Celsius become casualties not only these two there are many others check out this article
The FTX contagion: Which companies were affected by the FTX collapse?

Woodie

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Quote from: 2double0 on December 15, 2022, 09:46:11 AM

After the recent FTX dilemma, we need to rethink on our decision to keep our funds at exchanges at all or not. All this has actually impacted the markets' trading volume a lot already

Trading has taken a tumble after several of such incidences and the only way to win traders back will be through guarantees of funds being 100% protected through insurance or something....otherwise trading volumes will remain flat for a while.

Quote from: 2double0 on December 15, 2022, 09:46:11 AM

This shows that sometimes, even not being guilty, the place where we put our trust and money may get compromised due to the services it is using or attached to, same as in this case where Gemini was not at fault but the third party vendor got hacked and there was a huge data breach of that exchange.

It's time such entities showed capacity to handle such sensitive user data or better yet find a way to scrap out KYC to reduce their on their responsibilities.

Quote from: 2double0 on December 15, 2022, 09:46:11 AM

Should we worry on every small aspect now that we know that these places are also vulnerable to get attacked not directly but indirectly through the services or various other departments they are involved with?

We definitely have to take an interest in such more especially the data affected is about us, maybe legal action is the way to go for now.

sunsilk

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Quote from: Fiatless on December 17, 2022, 09:11:00 PM

Quote from: sunsilk on December 17, 2022, 07:09:26 PM

Aside from being affected with users fund, what's more worrisome are those information that has been obatained by the hackers.

They have it permanently and can access or sell it to the dark market or any company that has interest on those information.

That is why if it includes our email, we are receiving unwanted emails and phishing email attempts.

This hacked information would be used to hack or attack the accounts of customers. Sometimes most exchanges would keep information about an attack on their platform secret because they don't want to lose clients' trust and confidence. Meanwhile, the best they would have done was to notify customers so that they can change their passwords or carry out other security measures. The best option remains that we should only put funds that we can afford to lose in exchange and personal information should to a large extent remain private.

That is for sure, when they've been attacked and there's a breach, there's the chance that they don't really want to inform their community and users because that will create a ruckus.

And that's what they don't want to happen and now with Binance, they've seen how wise people are these days. There will be a huge outflow of withdrawals whenever there's a bad news about an existing exchange.

Adbitco

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Always Act Smart and Play Safe With Your Funds

As a member over here in the forum i believed you should get used to it and know how to safeguard your information and personal data or details most especially not leaving your funds on a centralized exchangers because its not secured and safe for one to leave their money, the best is to always look for a reliable wallet where you could have all phrase and private key kept on your custody than just leaving your funds over in any exchanger.
What i always said is that as a smart user over here, if you are not trading or converting your to fiat or from fiat to cryptocurrency don't leave your funds on exchange. It's always says "Not your key not your money". Keep in mind that FTX and many other security breaching today are not just emanating recently so apply wisdom and know where to keep your funds.

rat03gopoh

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Recently I thought that regulations are only made oriented towards user activities: KYC, suspension of account/assets, and restricted countries. Based on the FTX case, I wonder whether regulations also have specific rules regarding the activities of the exchange itself, such as the obligation to report balance sheets, liquidity, company performance, and actively monitor their team and partners intelligently?

It is very surprising if the shady operation carried out by the SBF was revealed precisely thanks to non-legal authorities.

Fiatless

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Quote from: sunsilk on December 17, 2022, 07:09:26 PM

Aside from being affected with users fund, what's more worrisome are those information that has been obatained by the hackers.

They have it permanently and can access or sell it to the dark market or any company that has interest on those information.

That is why if it includes our email, we are receiving unwanted emails and phishing email attempts.

This hacked information would be used to hack or attack the accounts of customers. Sometimes most exchanges would keep information about an attack on their platform secret because they don't want to lose clients' trust and confidence. Meanwhile, the best they would have done was to notify customers so that they can change their passwords or carry out other security measures. The best option remains that we should only put funds that we can afford to lose in exchange and personal information should to a large extent remain private.

sunsilk

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Aside from being affected with users fund, what's more worrisome are those information that has been obatained by the hackers.

They have it permanently and can access or sell it to the dark market or any company that has interest on those information.

That is why if it includes our email, we are receiving unwanted emails and phishing email attempts.

Accardo

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It is bitter that the traditional finance system permeated the cryptocurrency peer 2 peer trading system through centralized exchanges. I'm a victim, they've got my identity cards, who knows the hacking group in possession of my photos. It's quite too risky, to expose millions of customer's KYC to criminals. Their database is not secure and can easily get accessed once the exchange is hacked. I don't see any difference, CEX is 100 percent operating like the banks. We should worry more about CEX than getting rid of the banking system.

Z-tight

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Quote from: Husires on December 16, 2022, 01:48:37 PM

If lawsuits are submitted to all platforms that neglect user data or a harm from the causes that will happen, these platforms will be spent more effort in protecting the evidence and sharing them with third parties, but the conditions of the service make them very lazy to control these data. if you are from a country that is difficult to file a lawsuit, it is better to consider that any data you send to a platform has already been hacked.

Their terms of service may assure you that your data would be protected and won't be shared with any third party, but centralized exchanges are known to sell their users data or give it to blockchain analysis companies; the government have also regulated exchanges to the point that they can request for information about their users and get it, so what is the point of filing a lawsuit if they get hacked and your data is exposed, it won't yield a thing, because your data was exposed the moment you registered. The exchange would even exempt themselves from any wrongdoing because it was a breach of their system that was beyond their control.

If an exchange platform files for bankruptcy, information about the exchange is made public to the court, some of these information includes users private data, it happened when Celsius filed for bankrptcy some months ago, that is the extent to which centralized exchanges carry a privacy risk, because there are many ways your data can be exposed to the public.

sheenshane

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Quote from: 2double0 on December 15, 2022, 09:46:11 AM

Should we worry on every small aspect now that we know that these places are also vulnerable to get attacked not directly but indirectly through the services or various other departments they are involved with?

I think this isn't a small aspect to be worried about, it's a serious topic that could have consequences putting our data at risk when picking the wrong exchange that easily got hacked or when has a security breach. From the start, we should know this possible outcome, that's why picking a centralized exchange where we entrust our data is quite tricky, or just never using them if this is what you are worried about. Just accept the fact that it's always vulnerable to hacking all of CEX's platforms even though how tight they're when it comes to their security measures.

Quote from: The Cryptovator on December 16, 2022, 12:24:38 AM

Centralized means centralized, doesn't matter how good it is. Using centralized means we already compromised our privacy. Though sometimes we don't lose funds we have been losing our data during the data breach. Even top exchange Binance is not out of data breach. So day by day it's become impossible to trust any exchange whether with our funds or data. There is no solution except dex or swap where we can't find our desired coins sometimes.

I tend to agree with this, quite simply but yet that's the fact.

Husires

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If lawsuits are submitted to all platforms that neglect user data or a harm from the causes that will happen, these platforms will be spent more effort in protecting the evidence and sharing them with third parties, but the conditions of the service make them very lazy to control these data.
if you are from a country that is difficult to file a lawsuit, it is better to consider that any data you send to a platform has already been hacked.

Findingnemo

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Quote from: 2double0 on December 15, 2022, 09:46:11 AM

After the recent FTX dilemma, we need to rethink on our decision to keep our funds at exchanges at all or not. All this has actually impacted the markets' trading volume a lot already, which shows that traders are not interesting in trading too much and they are taking out their money at non-custodial wallets. I came across a news that says:

'A third-party vendor linked to the Gemini cryptocurrency exchange has suffered a data breach. The breach happened on or before December 13. The hackers gained access to 5,701,649 lines of information associated with the Gemini exchange customers. The obtained details include the email addresses and some of the phone numbers of these customers.'

More available at source

This shows that sometimes, even not being guilty, the place where we put our trust and money may get compromised due to the services it is using or attached to, same as in this case where Gemini was not at fault but the third party vendor got hacked and there was a huge data breach of that exchange. Should we worry on every small aspect now that we know that these places are also vulnerable to get attacked not directly but indirectly through the services or various other departments they are involved with?

Data breaches are not high threat like security hack for an exchange but these datas are not really from exchange but from the third party which the exchange shares the data with. But are we really going to suffer due to this then the answer is not if you know what you're doing whether it comes to internet so you can get rid of phishing attacks and most commonly known threats. But one who really want their privacy at top priority should never ever disclose any personal data to others even its highly popular and trusted exchange.

coin-investor

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Quote from: The Cryptovator on December 16, 2022, 12:24:38 AM

Centralized means centralized, doesn't matter how good it is. Using centralized means we already compromised our privacy. Though sometimes we don't lose funds we have been losing our data during the data breach. Even top exchange Binance is not out of data breach. So day by day it's become impossible to trust any exchange whether with our funds or data. There is no solution except dex or swap where we can't find our desired coins sometimes.

Am I the only one wishing that the top exchanges in the industry are all DEX but is unlikely to happen because investors are into so many coins and the lack of liquidity makes them turn to centralized exchanges because these centralized exchanges are good at manipulating the price and adding liquidity to attract users to trade on their platform, we either choose DEX or there should be regulation that will monitor the behavior of these centralized exchanges.
A centralized exchange is a necessary evil in this industry whether we like it or not.

The Cryptovator

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Centralized means centralized, doesn't matter how good it is. Using centralized means we already compromised our privacy. Though sometimes we don't lose funds we have been losing our data during the data breach. Even top exchange Binance is not out of data breach. So day by day it's become impossible to trust any exchange whether with our funds or data. There is no solution except dex or swap where we can't find our desired coins sometimes.

Topic: Can we suffer at some exchange due to some of their services' breach? (Read 285 times)