Although it appears that exchange hacks are becoming the new normal within the crypto industry, this could have been prevented if the smart contracts were properly tested for vulnerabilities. Yo Kwon, CEO and Founder of Hosho, the world’s leading blockchain security firm, has provided commentary on the breach and the importance of smart contract auditing for crypto trading platforms. Below are his thoughts on the Bancor hack.
Yo Kwon, CEO and Founder of Hosho, comments:
“Not all the details are released yet, and it may still be under investigation what truly happened. From the fact that Bancor claims a wallet was hacked and then was able to steal from a smart contract exploits a weakness that has always existed with their smart contracts. That weakness is how far-reaching a single wallet has been allowed to be. Their smart contracts allow for nearly unlimited control to the owners and apparently their ability to protect their wallets is inadequate. In addition to discovering security vulnerabilities, Hosho’s smart contract audits indicate whether or not a risk such as this exists as it is a liability to investors and exchanges. Any large source of funds or access to powerful smart contracts should at the minimum be using multi-signature verification.”