Cyber threat grows for bitcoin exchanges | #CyberSecurity #CryptoCurrency #Cybercrime | ICT Security-Sécurité PC et Internet | Scoop.it
At Tokyo's MtGox, customers have yet to recover their investments more than two years after closure.

Experts say trading venues acting like banks such as Bitfinex will remain vulnerable. These exchanges act as custodial wallets in which they control users' digital currencies like banks control customer deposits.

"The big exchanges that hold customer deposits are a big target for hackers," said ShapeShift's Voorhees, "and unfortunately most bitcoin exchanges store user funds."

When customers' checking accounts are hacked, there is always a third party at the bank that can step in to deal with the theft.

Not so with bitcoin, said Seattle-based Darin Stanchfield, chief executive officer at KeepKey, a hardware wallet provider. He expects more of these attacks to happen despite efforts to improve security at bitcoin exchanges.

"Unfortunately because of its irreversible nature, bitcoin requires near perfect security.

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