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Hackers Only Strengthen the Industry

Raymond’s Take: Hacker involved in $600 million crypto heist will strengthen the industry

An anonymous hacker who stole more than $600 million worth of cryptocurrency from decentralized finance platform Poly Network this week has returned almost all the money and apparently turned down a $500,000 reward offered by the company for exposing its security flaws.

The strange outcome comes off a cryptocurrency heist that has been called the biggest in the industry’s history.

The hacker has deposited the money into an account that requires both the network and hacker to manage jointly.

Reuters reported Friday that Poly Network thanked the hacker and asked for his future contributions to the industry’s security, ending the saga on a high note.

Hackers Only Strengthen the Industry

This bizarre incident may strike fear into new cryptocurrency enthusiasts, but it will only strengthen the cryptocurrency industry in the long run, which can be seen by the unphased crypto prices right now.

For many years, governments and economies across the world have improved their security online because of hacker’s successful plans. In 2011, Facebook hired then 21-year-old George Hotz, the famed PlayStation 3 hacker who spent four months battling Sony in courts for hacking into their systems. His hacks of Apple iPhones, iPod Touches and the PlayStation 3 served as clear evidence that he knew the flaws of security systems and that he could fix them. 

In the 1980s, Jeff Moss, who ran an underground bulletin board system for hackers, was hired by the U.S. Federal government to improve their online system’s safety. Governments and companies learn how to fix loopholes and vulnerabilities in their systems through the work of hackers.

Poly Network now understands its security flaw and will fix it along with reviewing and improving all areas of cyber security, ultimately providing peace of mind for their customers by ensuring that their digital assets are safe and sound.

The crypto heist will also further strengthen the entire decentralized finance industry by improving security systems.

It will raise the bar for decentralized finance projects and assure that every actor in the industry is solid with world class cyber security. This won’t be the last major heist in the cryptocurrency industry, but with everyone, we will learn how to improve and move forward, always with the purpose of helping keep our customer’s digital assets secure.

That is why at Cabital, our investment teams are firm believers that all decentralized projects under evaluation for investment must support a sound risk management culture and have robust cyber security systems and processes in place.

Edited by Baron Laudermilk

This article has been prepared by Cabital Fintech (LT) UAB  (the “Company”) and is general background information about some of the Company’s activities at the date of this presentation.

This article does not contain all the information that is or may be material to you and should not be considered as advice or a recommendation to you in respect of the holding, purchasing or selling of digital assets and does not take into account your particular objectives, financial situation or needs. This article has been made to you solely for information purposes. This presentation may be amended and supplemented as the Company sees fit, may not be relied upon for the purpose of entering into any transaction and should not be construed as, nor be relied on in connection with, any offer or invitation to purchase or subscribe for, underwrite or otherwise acquire, hold or dispose of any digital assets, and shall not be regarded as a recommendation in relation to any such transaction whatsoever. The contents of this presentation should not be considered to be legal, tax, investment or other advice, and you  should consult with your own counsel and advisers as to all legal, tax, regulatory, financial and related matters concerning an investment in or a disposal of such digital assets and as to their suitability for you.

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Raymond Hsu

CEO of Cabital

Raymond’s 10 years of experience holding leadership positions in fintech companies and banks inspired him to democratise digital currency financial solutions with Cabital.