Blockchain Safety First: Poloniex Recovers Bitfinex Stolen BTC
December 23 2021 - 6:00AM
NEWSBTC
Some of the main concerns the crypto era faces are safety and
security. The great innovation of digital assets offers many
benefits for its users, such as anonymity, but the same tools can
also be used with ill intentions. For this reason, the best
crypto-related platforms are the ones that can offer trust and
safety, like the exchange Poloniex, which prioritizes the security
of its users. Poloniex is a cryptocurrency exchange where
users of all experience levels can trade more than 300 digit assets
and over 450 markets like Bitcoin (BTC), Ethereum (ETH), TRON
(TRX), and other altcoins. It focuses on delivering a safe and
secure experience to the users during every transaction. “We
prioritize the investment in secure operations and strive to
provide industry-leading security and stability.” Poloniex is
ranked by CoinMarketCap as the 18th largest cryptocurrency exchange
by dollar-value volume with $119 million in the previous 24-hour
period. Hackers and fraudsters can unbalance the ecosystem, but
Poloniex minimizes risks and exposure to unauthorized access,
cyber-attacks, and other vulnerabilities, by storing the majority
of deposits in offline wallets through air-gapped cold storage. It
is vital for crypto platforms to provide this level of safety. As
Market Insider reports, in 2021 the ecosystem has seen 32 hack and
frauds events, which amounts to a total value of $2.99 billion.
Breaches to exchanges are amongst the most common type of attacks
in the industry. Mt. Gox saw the largest one yet, which led them to
insolvency in 2014. Poloniex notes that “Compared with traditional
financial markets, the anonymity of blockchain greatly increases
the difficulty of recovering stolen assets.” However, the
cooperation and technological improvements within the industry have
enhanced the methods to neutralize attacks and recover assets. A
recent joint effort between Poloniex and Bitfinex serves as an
example. BTC Recovered From The 2016 Hack To Bitfinex In 2016, the
crypto exchange Bitfinex experienced one of the largest
cyberattacks yet, which created a huge backlash, and the market
dropped over 20%. The security breach saw 119,756 BTC stolen, and
27.66270285 BTC were recovered in collaboration with the U.S.
government in 2019. Most of the coins sat idle for a long time
until the hacker started to move some in batches during 2020. The
movements opened up the possibility for intercepting them.
Recently, after detecting a 6,51458211 BTC deposit from “the 2016
thieves”, Poloniex successfully cooperated with Bitfinex and law
enforcement authorities to recover the assets. “Recovery Right
Token (RRT) holders will have their pro rata tokens redeemed in the
coming days, based upon the size of their RRT holdings on
04/12/2021 at 12:31 UTC. As the BTC/USD price at the time of the
recovery was $47,337, Bitfinex will redeem US$308,380.77334107 in
aggregate RRTs.” Bitfinex commented that they will continue
collaborating with third parties and investigations to recover the
remaining stolen assets. How Poloniex Increases Safety For Trading
Over the years, Poloniex has honored its promise of offering
security on the platform. It has improved and maximized the
protection of the user’s data privacy and adopted several safety
measures. The platform offers an efficient Anti Money Laundering
(AML) system with “strict risk control systems” and efficient 24/7
multilingual customer support. Their internal risk control process
allows them to block suspicious transactions, carry proper
investigations, and return stolen funds. Poloniex cooperation with
institutions and other companies serves the growth and image of the
crypto market, opening the right paths to reduce crime, improve and
protect other industries and the investors’ experience “Although
the industry is still in its early stages, Poloniex has and will
never relax its self-restraint and is committed to building a
healthy, equal, transparent, and safe industry. Security is still
the biggest challenge facing the exchange. Poloniex will continue
to maintain its technological leadership, insist on safety first,
and provide higher security services for global users.” Image:
Pixabay
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