The WazirX hack has sent shockwaves through the crypto community, and I think it's high time that we really started getting serious about security in this digital asset space. According to an update from Nansen, the hacker is moving the assets left and right; they literally are not wasting any time cashing out.
According to what I could gather, he has already transferred billions of $BOB tokens and millions of $CHR tokens, netting a cool $8.7 million in Ethereum. This certainly isn't chicken feed, and begs the question of how many other exchanges are sitting ducks for this kind of attack.
I now fear the remaining $5 million in various cryptocurrencies, which is still resting within the hacker's initial address. It's like looking at a time bomb that one is sure will go off soon and wondering exactly how and when they would liquidate those assets. Analysts at Nansen are running helter-skelter trying to stay ahead of the hacker's moves.
This really opened my eyes to the vulnerabilities in our crypto platforms. I mean, we are always taught about the benefits to security that blockchain technology has, but it appears there is still a long way to go in terms of protecting user funds on centralized exchanges.
I think that exchanges really need to step up their security measures.
Real-time monitoring systems and better intrusion detection technologies are the least expected by today's standards. But let us face it, it is really definitely not left to the exchange alone. It also boils down to users taking personal responsibility over security. This has definitely taught me a lesson regarding where to store my crypto from now on.
Reactions within the crypto community, based on what I have observed, are mixed.
Of course, lots of anger is floating around, which is understandable. It feels like these hackers act with impunity and that it's hard not to feel helpless against the theft so brazenly done. On the other side, however, I've noticed some very optimistic voices who see this as a turn-it-good opportunity, the kind of event that will eventually make our systems even stronger.
One thing's for sure, and that is, the crypto world definitely needs more collaboration. Exchanges and blockchain analysts must work jointly with authorities if we are to continue staying ahead of these attacks.
Looking at this from a wider angle, one wonders the impact of mainstream crypto adoption under such incidents. It's hard enough dragging skeptics aboard with all the benefits that digital assets have and not having to explain away multimillion-dollar hacks every other month.
Posted Using InLeo Alpha