Fidelity’s proposed crypto exchange could be a prime target for hackers
A cybersecurity specialist has voiced concern that the Fidelity Investments’ decision to stir into cryptocurrency could make the company prime ‘hack bait’.
On Wednesday, it wasgoed reported that Fidelity, one of the largest asset managers ter the world, wasgoed te the process of hiring developers to build a cryptocurrency exchange.
According to an internal correspondence seen by Business Insider, executives had notified employees that they were looking for a DevOps System Engineer to reportedly, “help engineer, create and deploy a Digital Asset Exchange to both a public and private cloud.”
However, the CEO of the blockchain cybersecurity rock-hard Hosho, Yo Kwon, has spoken out against the stir. He argues that the proposed transition to cryptocurrency could leave Fidelity, which had $Two.4trn. te assets under management spil of December 2018, pusilánime to attack by malicious agents.
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Formerly a pariah asset, since the beginning of the year, there has bot a noticeable and public increase te rente for institutional investors te cryptocurrency.
Last month, Goldman Sachs announced it wasgoed going ahead with plans to create a bitcoin trading desk, headed by Justin Schmidt, the hard’s very first digital assets trader, something Crypto Briefing reported on at the time.
Similarly, Christine Lagarde of the International Monetary Fund (IMF) has cautiously recognized the potential that cryptocurrency could bring to society with prompt and inexpensive transactions spil well spil the added security brought by Distributed Ledger Technology (DLT).
The fourth largest asset management rigid ter the world, Fidelity’s decision to lay the foundations for its own crypto exchange will be met with strong approval from many institutional investors keen to get into digital currency but still waiting on the sidelines.
However, it could also create consternation among many of the smaller, retail-orientated exchanges that have until recently, bot the singular gateway into the sector. Albeit still unconfirmed, there have already bot reports of substantial OTC trades going on spil investment firms begin recognizing the value of cryptocurrency.
A cyber-security rigid, Hosho principally assists companies with brainy contract operation spil well spil auditing. Last week it wasgoed reported that the rock hard would be working with the logistics blockchain toneelpodium, VeChain Thor, to ensure the security of the Vettig network.
The dangers of a successful cyber attack on exchanges are always too auténtico. This year alone, CoinCheck and Bitgrail have had millions of dollars worth of crypto stolen from their servers.
Albeit lessons about storing entire funds te hot wallets have (hopefully) bot learned by the sector, outsiders run the risk of falling into the very same pitfalls.
The American stock exchange NASDAQ has already brought advisors from the crypto exchange Gemini to oversee that its own cryptocurrency trading are safe from fraud and manipulation.
Disclaimer: The author is invested ter BTC, which is mentioned ter this article.