Hackers and cryptocurrencies seem to go hand in hand as per a recent report by Bloomberg that revealed some interesting details.
As per the report, hackers have stolen at least 9.8 billion dollars in crypto from investors and holders. KPMG, one of the big four accounting firms, stated that it was essential for the crypto industry to improve security before it can truly grow.
Hackers and cryptocurrencies
These 10 billion dollars were stolen due to improper security measures, or poorly written codes. KPMG wrote that increased crypto adoption has increased the competition for a place in portfolios. This makes it even more necessary for institutions in the crypto sector to safeguard the tokens.
This is even more true for institutional investors which would not risk owning cryptocurrencies the “same way their cash, stocks, and bonds are. Some of the earliest companies to offer crypto custody services are Coinbase, Gemini Trust, Fidelity Investments and exchanges operated by the Intercontinental Exchange (ICE).
The report includes statements from the KPMG company who explained how the popularity of Bitcoin and altcoins like Ethereum increased among institutional investors due to the price jump Bitcoin made back in 2017, reaching an all-time high of $20,000.
The report cautioned hedge funds to stay alert since crypto-assets can be stolen by cyber-criminals. In 2018 alone, around $1 Billion worth of crypto assets were stolen by online hackers; the majority of them were looted in the first half of the stated year. Cryptocurrency intelligence firm CipherTrace predicted that this “hackers and cryptocurrencies” trend will continue for years to come.
The report also stated that since hedge funds have started taking interest in crypto assets and are attentively competing for investors, the security issues have become more significant than ever before.
Conclusively the document stated that the main reason why thieves and hackers succeed in their malicious attempts is that the security lacks the required standard needed to protect these assets, or it may be possible due to poorly written code that secures crypto assets.
Featured image by Pexels
