With eight major bitcoin exchanges reportedly holding more than 1.925 million BTC (about $14 billion), crypto investor and entrepreneur, Trace Mayer, highlights the dangers of such massive hoards.Cause for Crypto Concern
Tweeting on Monday (December 2, 2019), Mayer reasoned that these massive BTC holdings in Bitcoin exchange wallets were a danger to the industry. According to Mayer, these BTC hoards are “just waiting to be lost like so many others.”1.925m+ #Bitcoin supposedly being held at @coinbase @BitMEXdotcom @Bitstamp @bitfinex @krakenfx @BittrexExchange @coincheck_en @Poloniex just waiting to be lost like so many others… Have you tried to withdraw any lately? Not your keys; not your coins. https://t.co/7i8F58PS38 pic.twitter.com/9AVsR7gRRw — Trace Mayer [Jan/3➞₿🔑∎] (@TraceMayer) December 2, 2019
Mayer is, of course, referring to the many instances of Bitcoin exchange hacks and other incidents that have led to bitcoin sums being lost forever. In 2019 alone, some well-known Bitcoin exchanges in Canada, New Zealand, and South Korea have shut down.
Not all of these shutdowns were due to the activities of cybercriminals. In the case of QuadrigaCX in Canada, for example, the supposed death of its CEO, Gerald Cotten, saw the platform unable to access its cold wallet storage.
In the event of any major security breach at any of these major Bitcoin exchanges could lead to billions of dollars in bitcoin lost forever. The presence of such a massive bitcoin stash may also provide an incentive for crypto hackers.
At the start of 2019, blockchain intelligence firm, CipherTrace, warned that bad actors within crypto exchanges were becoming a clear and present danger to the security of crypto exchanges. Investigators reportedly suspect some of the hacks that have occurred in 2019 including Cryptopia and Bithumb to be inside jobs.Self Custody: ‘Not Your Keys, Not Your Bitcoin’
For Mayer, an advocate of ‘not your...