It was a hit again this week. The UK-based cryptocurrency exchange EXMO was hacked. In total the company lost 6% of the assets entrusted to the platform by clients, $4 million of which was stolen via Poloniex.
Exactly how much value the company lost Profit Revolution is still unknown. EXMO has already stated in a statement that it is not possible to retrieve the cryptocurrencies stolen via Poloniex.
EXMO has now reassured the affected users that they will repay everything.
Investigation into EXMO hack by police
The exact cause of the EXMO hack is not yet known, but the police investigation has started. The tricky thing about exchange hacks is that, in principle, of course, nothing can be ruled out.
The company is going to screen the entire system and all security processes to find out where the problem lies. Preparations have now started to get the exchange up and running again. However, it will be a long time before customers of the platform fully trust it again.
This hack is further proof that it is not a good idea to keep your bitcoin on an exchange. For many beginners, it is ideal to take their first steps into the landscape via an exchange. But after a while, it is better to take your bitcoin into your own hands.
Certainly not the last exchange hack
The EXMO hack is not the first and certainly not the last exchange to face these problems. Bitcoin is designed to manage your assets independently of third parties. Bitcoin is money based on mathematics and game theory instead of trust.
By leaving your bitcoin with an exchange, you bring the element of trust back into the equation. In the first instance, you have to trust the exchange itself, which in most cases is not the problem.
The greatest danger lies in the enormous amounts of bitcoin that exchanges manage, making them a popular target for hackers. For your own good it is so valuable to sit down and protect your digital assets.