Original|Odaily Planet Daily
Author|Wenser
As a frequent target of hacker attacks, the cryptocurrency industry has seen a surge in security incidents. According to CertiK Alert monitoring, the industry suffered total losses of $85 million in the first half of June, with the UwU Lend protocol alone losing over $22 million. From the beginning of the year to early June, the cryptocurrency industry has suffered losses of approximately $821 million. Earlier, several leading exchanges and users in the industry have experienced various degrees of security attacks and asset losses. Cryptocurrency exchanges are particularly vulnerable to digital asset security incidents. In this regard, Gate.io, a cryptocurrency exchange established in 2013, has always been at the forefront of the industry. Its unique security measures, such as binding IP and dual internal and external security, have built a “digital asset security protection gate” for many users. Today, let’s explore Gate.io’s “multiple security protection system.”
Security issues remain a chronic problem in the industry, and addressing this issue is crucial. In 2024, the cryptocurrency industry continues to face the chronic problem of “security risks.” In February 2024, a cryptocurrency exchange in Hong Kong, BF, lost approximately $56.5 million in assets. In April, a cryptocurrency exchange in the Middle East suffered a loss of $14.8 million in an attack. In May, a leading cryptocurrency exchange in Japan was hacked, resulting in the theft of 4,502.9 bitcoins, with losses amounting to $305 million. In June, a cryptocurrency exchange in the UK stopped trading after suffering a $22 million loss due to a “security incident” and subsequently closed two days after a hacker attack. A cryptocurrency exchange in Turkey announced that the platform was subjected to a network attack on June 22, affecting the assets in 10 different cryptocurrencies’ hot wallets.
Looking back, it seems that addressing the root cause of the issue is crucial. Specifically, the industry’s main problems include the following three aspects:
First, on the exchange side: Some exchanges have vulnerabilities in risk management mechanisms, lack encrypted insurance mechanisms for user data management, lack disaster recovery backups, or have permission management issues. In addition, the use of a single asset storage method is a significant cause of frequent digital asset security incidents at exchanges.
Second, on the user side: The natural “anonymity mechanism” of blockchain networks and the complex, high-risk network environment provide convenient opportunities for hackers or attackers. Lack of asset security management awareness is a major cause of cryptocurrency asset losses. Furthermore, users with significant wealth face various offline physical risks, and their personal and property safety is threatened. Additionally, “social engineering” attacks are lurking, targeting their digital assets.
Finally, on the security company side: Despite more than a decade of development in the cryptocurrency industry, a comprehensive “white-hat hacker” mechanism has not been established. The absence of a clear security vulnerability feedback mechanism makes it difficult to address and resolve many issues in a timely manner. Recently, the cryptocurrency exchange Kraken and the security company Certik had a dispute over security vulnerabilities and feedback mechanisms. For more details, please refer to the article “CertiK ‘Confronts’ Kraken: How Should White-Hat Hackers Be Measured?”
Frequent exchange hacker incidents, how does Gate.io solve the problem?
It is evident that exchanges, as critical nodes for digital assets, face the most direct and intense security attack tests. As a veteran exchange established in 2013, Gate.io has earned the trust and support of many loyal users through its continuous technical product updates, risk management, and convenient trading systems. It is understood that Gate.io has over 16 million global users and supports over 2,200 cryptocurrencies, making it one of the mainstream exchanges, offering a variety of cryptocurrency trading options for many users.
In response to hacker attacks, financial strength and a 100% reserve fund with transparency and security are the most basic components of the user asset security protection system.
As an exchange that has always insisted on “making adequate preparations for the security of users’ digital assets,” Gate.io became one of the first exchanges in the industry to commit to user-verifiable reserve proof in 2020, based on compliance and transparency-related commitments. This allows every user to independently verify that the various digital assets under the exchange are held in a 1:1 ratio. Furthermore, Gate.io periodically issues 100% reserve fund reports to ensure that user assets are not maliciously misappropriated or that other security issues do not occur.
Gate Reserve Fund Audit Interface
In terms of specific asset security management, Gate.io’s efforts are also commendable. Gate.io’s multiple protection strategies have established a solid digital asset security barrier.
It is worth mentioning that due to the multifaceted and complex nature of security incidents in the industry, Gate.io has not only focused on a single aspect but has worked to create a digital asset security protection system based on multiple protection strategies.
For the exchange side, Gate.io protects user assets through a dual storage solution that combines online and offline storage methods, leveraging the physical protection advantages of cold wallets and the encryption protection features of hot wallets to ensure high security for asset storage.
Gate.io Asset Security Explanation
In addition, the effective combination of advanced encryption technology, cloud security protection, anti-DDoS measures, robust DNS security, and web application firewalls provides ample protection against external threats.
Gate.io Platform Security Introduction
For the user side, Gate.io has prepared a comprehensive security infrastructure to protect platform users’ account assets. Every operation involving digital or physical aspects is smoothly carried out under corresponding security facilities. Specifically, this mainly involves the following aspects:
1. Gate.io’s unique “IP binding” feature: It is recommended that users select “Bind to IP address” when logging into the exchange account. This feature protects the user’s current login session from unauthorized network hijacking and ensures that the account is only available on Gate.io.
2. Isolated password setting for fund operations: Users can set a unique fund password to verify transactions and withdraw assets. Note: This password should be distinct from the login password to prevent unauthorized transactions.
3. Enable 2FA dual-factor authentication: Users can use Google Authenticator or YubiKey and other two-factor authentication (2FA) tools to set up login security protection, adding extra security for account logins through multiple forms of identity verification (e.g., plaintext password + authenticator).
4. Enable anti-phishing email passwords: Users should enable anti-phishing email settings to effectively prevent fraudulent emails, strengthen phishing email detection, and receive genuine emails from Gate.io’s official email account to help users recognize fraudulent emails and avoid clicking on scam links.
Gate.io Account Security Explanation
These security features have been recognized and supported by industry experts, and their effectiveness has been verified in numerous practical applications. Of particular note, the “IP binding” feature, as Gate.io’s pioneering security strategy, effectively prevents unauthorized IP address access to user accounts, further enhancing the security of user assets. For more detailed information about Gate.io’s solutions, please refer to their official website.
In addition, Gate.io has established a top-notch internal security expert team to maintain user rights and ensure that users’ digital assets receive the highest level of protection based on risk management strategies.
For the security company side, Gate.io has also established a diversified professional team composed of senior security experts and external auditors to conduct rigorous testing and inspection of various components of the platform at irregular intervals to “complete the last piece of the security protection system puzzle.”
Furthermore, Gate.io has reached a long-term cooperation agreement with the renowned blockchain security company Hacken, which includes annual security assessments, penetration testing, and bug bounty programs, providing a complete security vulnerability feedback mechanism and substantial incentive rewards for white-hat hackers and anonymous security personnel. The reserve fund scheme of Gate.io was also reviewed by Hacken earlier this year, and its ability to balance functionality and complexity was highly praised.
Asset security is not only a user pain point but also a bottom line for the industry. After experiencing the early development pains of the industry in 2014 and 2015, Gate.io has emerged as a prominent player among many mainstream cryptocurrency exchanges, actively supporting early high-quality assets, innovative trading protocols, and popular investment targets. As a result, it has been affectionately referred to as the “Sesame Open Door,” symbolizing its magical influence on the market. According to official data, Gate.io’s annual trading volume in 2023 reached $17.2 trillion, with over 360 new currencies added throughout the year. More than 7 million people have participated in over 700,000 Startup new project subscriptions, and the user base of Sesame Finance has reached millions, with a total fund volume of over $768 million USDT.
Now, after marking its 11th anniversary, Gate.io continues to maintain long-term stability and development in safeguarding user asset security and ensuring the stable operation of the platform. With the slogan “Opening the Era of Full Trading,” Gate Group’s establishment of local stations in Malta, Hong Kong, Lithuania, Turkey, and other regions highlights its focus on global development.
In this process, asset security remains a significant issue for users and the industry. After all, the formation of a secure, open, and decentralized blockchain world requires the efforts and support of multiple parties, and Gate.io is willing to play a more proactive role in this process.
As an ancient saying goes, “Although the road is long, as long as you keep walking, you will eventually arrive; although the task is difficult, as long as you do it, it will be accomplished.”
Building a “security protection gate,” Gate.io has been on the road all along.
