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On Monday, January 14, the large crypto-exchange Cryptopia was hacked, which led to significant losses of investor‘s funds. In an official statement, the company said that the New Zealand Police and the government high-tech crime investigation unit had already begun an investigation into the case.
One of the latest high-profile stories of a crypto-burglary hacking occurred in January 2018, when the Japanese Coincheck cryptocurrency exchange was hacked and lost over $ 500 million. Coincheck said at the time that the security breach was caused by a shortage of staff and experts working to improve security measures. The Coincheck security breach prompted the Financial Services Agency (FSA) of Japan to tighten the regulatory framework related to cryptocurrencies and make changes to existing policies.
Because of the many security breaches that have occurred since the beginning of 2016, the cryptocurrency exchange market has struggled to gain a reputation as secure platforms. If the exchanges continue to be so unsustainable with basic hacking tools, investor confidence in the public market will inevitably fall. One of the factors contributing to security breaches and often faced by cryptocurrency exchanges is a focus on profitability, and not on the protection of investors.