In recent years, with the booming digital currency market, exchange security issues have attracted much attention. In 2019, a series of exchange security incidents occurred frequently, which aroused widespread concern from the industry and users. From hacker attacks to internal mistakes, security issues are endless, and security precautions are imperative. This article will take a deep look at the inventory of exchange security issues in 2019, reveal the risks, and explore effective security precautions.

In 2019, exchange security issues occurred from time to time, bringing huge challenges to users and the industry. First of all, hacker attacks are one of the important threats to exchange security. Bitcoin exchange Binance suffered a $70 million hacker attack in 2019, shocking the entire industry. Hackers used API keys and 2FA information to successfully steal a large amount of funds, causing widespread concern and panic. This incident revealed the weak links in the exchange's security protection, warning that the exchange needs to increase its prevention of external attacks.

In addition, internal mistakes are also an important part of the exchange's security issues. Take the Canadian exchange QuadrigaCX as an example. The founder of the exchange suddenly died, resulting in the inability to access millions of dollars of digital assets. Subsequently, the exchange claimed that the only person who could not access these assets had died, resulting in the permanent loss of funds. This incident reveals the importance of internal management and risk control of exchanges, and emphasizes the need for exchanges to establish a sound internal audit and risk management mechanism.

In addition to hacker attacks and internal errors, exchange security issues also involve challenges in regulatory compliance. Some exchanges have failed to ensure the safety of user funds due to poor supervision or illegal operations. For example, the Japanese exchange Coincheck was punished by regulators in 2019 for failing to fully fulfill its security obligations, and user funds were threatened. This shows that exchanges need to strengthen self-discipline in compliance to ensure the safety of user assets.

For exchange security issues, security precautions are of great importance. First, exchanges should strengthen technical security measures, including multiple verifications, separation of hot and cold wallets, etc., to enhance the system's ability to resist attacks. Secondly, exchanges should establish a sound internal management mechanism, including risk control, audit supervision, etc., to prevent internal error risks. Finally, exchanges should actively cooperate with regulatory authorities, strengthen compliance construction, and ensure the legitimate rights and interests of users.

In summary, exchange security issues occurred frequently in 2019, and security precautions are imperative. Exchanges need to be vigilant against external hacker attacks, internal management risks and regulatory compliance challenges, strengthen security precautions, and ensure the safety of user assets. Only by continuously improving security awareness and strengthening security technology and management can we effectively prevent exchange security risks and ensure the healthy development of the digital currency market. I hope that exchange security issues will be better managed in the future to create a safer and more reliable trading environment for users.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

According to statistics, security issues in exchanges have occurred from time to time recently:

1. Bitpoint Japan exchange hot wallet was stolen, and multiple virtual currencies were lost, with a value of more than 3.5 billion yen.

2. Due to problems with the cache system of Amazon Web Services (AWS), many exchanges have experienced abnormal transactions and deposits and withdrawals, and even more than 40 BTC were traded at $0.3.

3. KYC information was leaked. According to coindesk, after the hacker broke down the negotiations, he sent KYC information to Binance users in the Telegram group.

4. Recently, Monero lock transfer attacks have occurred in major exchanges. Hackers initiated lock transactions, causing the locked Monero coins in the exchange to be unable to circulate during the lock time, limiting their liquidity.

5. Recently, 400 million PTTs were stolen from an exchange, and some of the stolen funds have been frozen. The exchange wants to recover the loss by requiring the project party to upgrade the contract to map the locked 280 million tokens to a new currency.

By summarizing various recent exchange security incidents and user coin loss incidents, we believe that there are three main sources of exchange security incidents:

1. Insufficient user security awareness leads to mistaken entry into phishing websites and theft of private information.

2. The exchange security system is not perfect, and the platform itself has security loopholes.

3. After the exchange connects to data services or other services, it has not established an emergency mechanism for uncontrollable factors.

With the recovery of the digital currency market, many investors have begun to enter the market, and many new exchanges have also appeared in the public eye. However, the accompanying exchange security incidents have also occurred frequently.

Here is a reminder:

1. When users choose investment platforms or investment targets, they should not choose too single. The digital currency market is high-risk, and they should not put all their eggs in one basket to avoid risks.

2. Investors should improve their security awareness, ensure the storage and use of private keys safely, avoid using secret keys in unsafe environments, and beware of phishing scams.

3. Exchanges should pay enough attention to the system security system. They should not only have a reasonable security architecture, but also conduct overall security testing on the system. They should promptly check the security vulnerabilities reported by security companies to avoid the same attacks.

4. The exchange should establish a complete risk control emergency plan. No matter how mature the technology of the exchange is, hackers may find loopholes that can be exploited. Therefore, in the exchange system, when an emergency causes abnormal transactions and funds are stolen, a complete emergency response mechanism and compensation mechanism are particularly important. For example, risk funds are used to deal with security incidents, or user funds are insured to hedge the impact of data leakage or theft on user funds.

5. When the exchange project party finds it difficult to carry out a comprehensive security system architecture for its own exchange system, it needs to consider using third-party security products or cooperating with security companies to jointly create a secure trading environment and risk control emergency response mechanism for the exchange.