Topic: Chinese Crypto Exchange Paralyzed After Suffering Serious Cyber Attack (Read 129 times)

It is always the customer's side of the story that should be taken utmost important in any breach. After all, it is their money that is locked indefinitely and even probably lost. The other side of the story may not matter much. It may be a serious security breach, an inside job, an exit scam, and so on. The point is that the money entrusted to them is put into jeopardy.


Especially among centralized exchanges. It would perhaps help if these companies are required that their clients' funds be insured up to a certain amount. Rather than focusing mainly on regulations in line with KYC, money laundering, terrorism, and so on, regulators should also put up mechanisms that would provide security to the customers.

every time this happens, it will remind the users of mtgox or cryptopia to once again withdraw coins from the exchanges as part of precautions to attacks like these.
but it's good to know they are guaranteeing to be liable to users, unlike other exchanges. i thought this hotbit is a Korean exchange. i never use it though, it becomes popular during the IEO time in 2018-2019.

if it was Vindax or p2pb2b exchange that is hacked, i wouldn't hope fund to be returned.

There may be more than one side to the story, here we are seeing from the customer perspective.

There is serious lack in security measures among centralized exchanges and every few months we see one new exchange getting hacked and the owners are probably ramping security up but not going up to the mark.

Likewise they rarely store the coins on a hot wallet beyond a max value. Most cold wallets are not directly connected and therefore the theft of funds are not immense. Still this sector lacks a lot in legal concerns as to how they protect their customers and those who are putting their trust in them. One thing I hope will change if in future we can see a regulation in crypto.

The idea that you should not store coins on exchange is an ideal one. What happens to the ones who left trades open overnight and went to sleep? Their money gets locked up for now. Hoping that they become operational again and take proper measures to prevent such incidents again.

I just hope that this is going to end well. After years of hearing about exchanges getting attacked, temporarily freezing operation pending damage assessment, and trying to rebuild only to succumb to the damages caused later on, there is already a certain trauma in me every time something like this happens.

It has been proven again and again that centralized exchanges are not to be fully trusted when it comes to both your money and your personal information.

You can check the real source here:
https://hotbit.zendesk.com/hc/en-us/articles/1500008915521-Hotbit-s-Announcement-on-Emergency-Maintenance

There is an ongoing thread about this:
https://bitcointalksearch.org/topic/m.56904573

A thread was also created to today about it:
https://bitcointalksearch.org/topic/m.56916867

Never mind me, but let us get concentrated on a single thread about the exchange hack rather than making multiple threads.

The Hotbit Exchange is temporarily disabled following a cyber attack that disables a number of its central services.
In a statement, the Chinese cryptocurrency exchange said it had a security problem at around 8pm GMT on Friday. The hackers also tried to hack the Hotbit wallet, but the attack was detected and stopped by the base's risk control system.
Hotbit says it has suspended all of its research services. It is also completely rebuilding its server suite to increase security.
While Hotbit backs up all data, they are unsure of the damage caused by the attack.
“The attacker maliciously deleted the user database after failing to obtain assets. Although the database is routinely backed up, we are still uncertain whether the attacker has polluted data or not before the attack. Therefore, we also need to conduct a comprehensive inspection of the overall data. Once any anomaly is detected, we will perform an accurate reconstruction to ensure that all user data is accurate.”
The exchange assures all of its nearly two million users that its assets, passwords and two-factor identification (2FAs) are completely secure. However, it warns that hackers have control over the database and may send fake correspondence, which you think is from the Hotbit team. It also admits that attackers may have hacked into the phone number, email address and other user data.
The cryptocurrency exchange estimates that it will take between seven and 14 days to rebuild and maintain the servers. Hotbit says it will take full responsibility for losses on ETFs during this period. Cancels all open orders until the system recovers to prevent losses.


Source: https://dailyhodl.com/2021/05/02/chinese-crypto-exchange-paralyzed-after-suffering-serious-cyber-attack/