Crypto exchange BitMart confirms hack resulting in loss of $150M

Re:Crypto exchange BitMart confirms hack resulting in loss o... by igorkraw on Sunday December 05, 2021 @03:02PM (#29452563)

Would there be much benefit? Hacks happen because of two reasons:

1. Bugs 2. Social engineering

In a decentralised exchange you increase your vulnerability to 1 trying to get rid of 2 on the exchange side, and I'm unsure you can offer the features that the bulk of traders want on a decentralised exchange. Actually, I'm sure (enough to bet 50 $ on it if there is a way to properly specify it) that the most important thing cannot be offered by decentralised exchanges: cashing out to pay your taxes in fiat.

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Re:Crypto exchange BitMart confirms hack resulting in loss o... by Acrobatic_Road on Sunday December 05, 2021 @03:10PM (#29452645)

On a decentralized exchange, users custody their own funds. So if a user gets hacked, it's not on the exchange. The only exception is liquidity providers, who give money to a contract.

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Re:Crypto exchange BitMart confirms hack resulting in loss o... by igorkraw on Sunday December 05, 2021 @03:38PM (#29452969)

Yeah, but what if the contract implementing the decentralised exchange has a bug?

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Re:Crypto exchange BitMart confirms hack resulting in loss o... by Acrobatic_Road on Sunday December 05, 2021 @04:17PM (#29453368)

Well, then any LP funds in the contract are in jeopardy, as are any transfers to the contract. That's a lot less painful than all users of the exchange getting robbed.

So the theoretical "bug bounty" is way lower on a decentralized exchange. Decentralized exchanges have a smaller attack surface than centralized exchanges, and be publicly & professionally audited. That's why they don't usually get hacked.

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