A Tale Of Two Exchanges

in #cryptoexchange8 months ago

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On 29 Feb 2020, Coinhako sent the above email to account holders informing them that it has resumed 100% of its services for account holders after some restrictions were imposed due to a hacking attempt on 21 Feb 2020.

Between 21 - 29 Feb, Coinhako implemented the below measures:

  • Promptly initiate 100% refunds for the less than 20 accounts that were hacked

  • Impose mandatory password and 2FA resets for all account holders

  • Resume 'send' function for BTC, ETH and BCH on 28 Feb

  • Resume 'send' function for all listed cryptos on 29 Feb

The above scenario is in stark contrast to what happened after cryptoexchange Altsbit announced that it was hacked on 5 Feb 2020.

For Altsbit, events unfolded in the following manner:

  • Announcement on Twitter that hackers stole almost all of the account holders' BTC, ETH and other cryptos

  • Partial refund offer given to affected customers

  • Notified customers that refunds will take place from 10 Feb to 8 May, after which Altsbit will cease to operate.

From the vastly different denouements of Coinhako and Altsbit, after falling prey to hackers, one can draw the following conclusion:

One key factor contributed to the different outcomes stated above- investment in a sophisticated fraud detection system.

Had Altsbit dedicated its resources towards the implementation of robust fraud detection capabilities, it would not have been brought to its knees.

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