Blockchain security expert Hartej Sawhney has claimed in a new CNBC TV interview that more than $2.5 million dollars worth of cryptocurrency gets stolen from third party crypto exchanges every single day.
The co-founder of enterprise-grade crypto security solutions company Hosho Group attributed this to persistent security flaws in exchanges, but also the increasing sophistication of hackers who exploit them. He even describes some of these platforms to be “hanging fruits” to be taken advantage of.
More specifically, he identified some areas that platforms supposedly lacked adequate expertise in, such as the safe-keeping of hot and cold wallets, use of private keys, knowledge of Solidity (the language of Ethereum’s smart contracts), and upholding service quality assurance.
Because of such shortcomings, Sawhney claims these to be the reasons why many exchanges do not audit their security codes on a regular basis, which in turn also increases their security threat risk.
So far this year, hacking thefts have already claimed at least one exchange as far as the public is aware of – New Zealand’s Cryptopia, which TheCryptoSight reported might have lost an estimated $16 million in Ether and ERC20 tokens.