Security and safety are the two main issues facing the crypto-era. Although digital assets are a great innovation, there are many downsides. For example, anonymity. However, the same tools could also be used to commit ill intent. It is for this reason that the most trusted crypto-related platforms, like Poloniex’s, can provide trust and safety.
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. The exchange focuses on providing users with a safe, secure environment during transactions.
“We prioritize the investment in secure operations and strive to provide industry-leading security and stability.”
CoinMarketCap ranks Poloniex 18th in cryptocurrency exchange volume, with $119 millions over the past 24-hour period.
Poloniex can help to balance the ecosystem by protecting the majority of its deposits through cold storage.
This level of security is essential for cryptocurrency platforms. Market Insider reported that the crypto ecosystem witnessed 32 fraud and hack events in 2021, for a total of $2.99 billion.
The most frequent type of attack on the industry is the breach to the exchange. Mt. Gox witnessed the biggest one, leading to their insolvency in 2014.
Poloniex notes that “Compared with traditional financial markets, the anonymity of blockchain greatly increases the difficulty of recovering stolen assets.”
However, technology and industry cooperation have made it possible to mitigate attacks and retrieve assets more effectively. One example is Poloniex’s recent partnership with Bitfinex.
BTC Recovered from the 2016 Hack to Bitfinex
Bitfinex suffered one of its most serious cyberattacks in 2016. The result was a market drop of over 20%.
The breach led to 119.756 BTC being taken, while 27.66270285 BTC was recovered with collaboration from the U.S. government.
The majority of coins were left inactive for quite some time before the hacker began to move them in small batches around 2020. These movements made it possible for hackers to intercept the coins.
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 stated that they would continue to work with third parties in order to find the stolen property.
Poloniex increases trading safety
Poloniex’s promise to provide security for the platform has been kept over the years. 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. They can block any suspicious transactions and conduct proper investigations to recover 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 remains the greatest challenge for the exchange. Poloniex will continue to maintain its technological leadership, insist on safety first, and provide higher security services for global users.”