Dear QUOINERS,
As you know, there was a big incident at one of the Japanese exchanges were their hot wallet was compromised with over USD500M worth of NEM stolen.
Fortunately, they have announced that they will repay their customers albeit with a small haircut.
However, we must understand that this is not an isolated incident but the entire crypto industry is and will continue to be a target.
QUOINE is safe because we have implemented the following measures but this does not mean the whole industry is safe.
- 100% cold wallet (no hot wallet for the foreseeable future)
- Whitelist all withdrawal addresses for all crypto
- Private server where we can monitor all access
- Mandate 2FA
- No API withdrawals
Although we were not hacked and our customer assets are 100% safe, we are taking this incident as an alarm to further strengthen all of our security measures. There will be a trade-off between safety and convenience but I know everyone will prefer safety and security over convenience.
In addition to the above mentioned, we will launch a Crisis Management Committee that will report to the board and audit committee and will also be talking to the Japan FSA to update them on our additional security measures.
We will also conduct 3rd party checks and security tests as well as put more internal control.
We will do whatever we can to protect our customers asset.
Once again, I urge all of our users who have assets in other exchanges to make sure and confirm that these exchanges have at least the protection measures that I mentioned above.
We need to be stronger together.
Kindest regards,
Mike Kayamori
