Topic: Can we suffer at some exchange due to some of their services' breach? - page 2. (Read 332 times)
December 15, 2022, 08:36:10 PM
This is just one among a number of reasons why keeping funds in a centralized exchange is not recommended. Different kinds of breach could come from anywhere. A hack in the exchange's hot wallet could happen anytime. Or the malicious intention could come from the inside itself. Users' funds could have been risked elsewhere and lost. And then there's also mismanagement. Or a trusted staff could have leaked vital information leading to a successful breach. Since there are also third parties involved, the attack or failure could also come from them. In other words, there are a hundred possible ways that a centralized exchange could collapse anytime.
December 15, 2022, 02:11:42 PM
And even our documents and sensitive information(excluding password) breached its just a data that hackers can use to other things but it won't help to hack the exchanges wallet.
They won't use the data to target the exchange, they'll use it to target you. Average people have way less opsec than even the most corrupt and lax companies (like FTX for example). It is very easy to figure out what a person will do if you study their present interactions, something that corporate secrecy makes it harder to collect for business.
December 15, 2022, 01:55:27 PM
A data breach is common to any website not just on exchanges it's public and anyone can attempt to hack the website but we should not be the ones who suffer from their stupidity the exchange should be at fault for how they focus to protect customers' money from any attacks. They don't even hire someone to monitor their wallet 24/7 if there is one exchange staff monitoring the wallet they can easily make a double spend and send it back to the secured wallet.
And even our documents and sensitive information(excluding password) breached its just a data that hackers can use to other things but it won't help to hack the exchanges wallet.
And even our documents and sensitive information(excluding password) breached its just a data that hackers can use to other things but it won't help to hack the exchanges wallet.
December 15, 2022, 11:40:50 AM
Would you be worried about sharing your data with someone else or a 3rd party? I guess not when you are using CEX as it requires going through KYC. We don't know what they are doing with our data, do we? How do you know that Gemini didn't sell the database? When you are submitting your data to 3rd party, you are making a reason to be worried.
After the recent FTX dilemma, we need to rethink on our decision to keep our funds at exchanges at all or not.
This was always the same; why only after the FTX dilemma, we have to rethink? Having funds on a centralized exchange means you don't own the coins. It was/is/will be the same forever regardless of which exchange got hacked, or bankrupt. 
December 15, 2022, 11:18:04 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?
A data breach is not just a "small aspect", you using an exchange means you're giving up 2 valuable things for them to manage, your assets and personal information. The threat is clear from outsiders and sometimes insiders. Should you be worried? It also depends on your concern for the valuable things above.
Let's just say this concern is bound to happen given that no system is truly secure, it's only a matter of time. Use them when you really "have to", not just when you "can to".
December 15, 2022, 10:09:03 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?
It's not the first time an exchange(or an adjacent platform) got breached, so you should've been worried since the beginning. Only submit your personal information to a central service only when totally necessary. This applies to platforms inside and outside the cryptocurrency space.
https://cryptosec.info/exchange-hacks
December 15, 2022, 08:46:11 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?
'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?
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