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Do Analytics Companies Need More Involvement in Platform Hacks?

Do Analytics Companies Need More Involvement in Platform Hacks?
  • Over the course of 2019, eight cryptocurrency platforms were hacked including Bithumb and Cryptopia. 
  • As we start off the third month of 2020 we have seen the Decentralized Lending Protocol bZx hacked twice in just a matter of days this year. 
  • Despite the public announcement of such security breaches, recovery of the stolen funds has not yet been addressed.

Over the course of 2019, eight cryptocurrency platforms were hacked including Bithumb and Cryptopia. As we start off the third month of 2020 we have seen the Decentralized Lending Protocol bZx hacked twice in just a matter of days this year. Despite the public announcement of such security breaches, recovery of the stolen funds has not yet been addressed.

Analytics firms are typically the ones to keep an eye on such hacks if they have been revealed to the public. A firm’s role can be limited by the platforms themselves. According to the Chief Economist at Chainalysis, Philip Gradwell, the analytic firms have helped platforms keep track of its funds lost to hacks. 

In an interview, the Chief Economist said the following:

“It does depend on the extent to which an exchange wants to cooperate in this way. But certainly we do get exchanges that will reach out to us when they’ve been hacked.”

All the stolen funds were tracked by the company but as of yet, nothing has been confirmed as to whether they have been successfully retrieved by the platform.

It was made clear by Gradwell for the need of cooperation between platforms and said that an analytics firm’s involvement will require the platform to either reach out to them or make the hack public for progress to be made.

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

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