Recent Cryptocurrency Exchange Hacks
1. Regular Audits: Before launching a new feature or update, crypto exchanges should undergo comprehensive audits from reputable security firms. Audits help reduce vulnerabilities but cannot guarantee absolute security.
2. Cold Storage of Assets: Storing the majority of user assets in cold wallets minimizes the effects of hacks. Cold wallets are disconnected from the internet; thus, making it less vulnerable to hacking.
3. User Education: Users should be trained on safe practices, such as using hardware wallets and avoiding suspicious links. The more knowledgeable users are, the smaller the chances attacks like those that occurred to Binance will.
4. Multi-Signature Authentication: In multi-signature authentication, the exchanges can have multi-signature authentication where multiple private keys must sign one transaction. This makes it much harder for hackers to steal assets.
5. Timely Disclosure: Exchanges should promptly disclose security incidents to enable users and law enforcement to react. This cuts the elapsed time hackers have to transfer stolen funds without notice.