In response to reports that British cryptocurrency exchange EXMO has disclosed that unknown attackers withdrew almost 5% of its total assets after compromising its hot wallets, cybersecurity experts at Cerberus Sentinel and Clear Skies offer perspective.
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<p>A best practice is not to store and hold large amounts of funds in hot wallets on exchanges but rather transfer to either a cold hardware wallet (that has appropriate recovery codes set and stored securely) or to a standard bank account as the case may be on completion of the exchange transaction. This seeks to reduce personal exposure and loss in case of an exchange compromise.</p>
<p>A best practice is not to store and hold large amounts of funds in hot wallets on exchanges but rather transfer to either a cold hardware wallet (that has appropriate recovery codes set and stored securely) or to a standard bank account as the case may be on completion of the exchange transaction. This seeks to reduce personal exposure and loss in case of an exchange compromise.</p>