In light of recent security challenges within the crypto industry, Dr. Lin Han, CEO and founder of Gate.io, delivered a compelling address at Seoul Meta Week (SMW), underscoring the imperative of robust security measures in the crypto ecosystem.
His keynote, ‘Building Trust Beyond Blockchain,’ aimed to advance discussions on crypto security with leaders across the tech, business, and media sectors, emphasizing the critical need for enhanced digital trust in today’s crypto landscape.
“The crypto world is dangerous.”
It’s not a phrase you’d typically expect to hear from the CEO of a major crypto exchange, but it’s grounded in undeniable reality. During his presentation, Dr. Han shared compelling data on crypto hacks and thefts sourced from Gate.io researchers and Chainalysis.
From 2014 to 2024, the most prevalent incidents included rug pulls (253), contract bugs (232), and flash loan attacks (123). Notably, between 2021 and 2023, a staggering $8.7 billion worth of crypto was stolen from platforms—a significant rise compared to the approximately $2.5 billion in the preceding three years. Although the total amount of stolen crypto decreased in 2023 compared to the previous year, the number of incidents increased from 219 to 231.
Over the past three years, 77% of stolen funds originated from Web3 platforms, while 33% came from centralized ones. Of particular concern, North Korean-based hackers accounted for 36% ($3.1 billion) of these losses. Their prominence surged in 2023, with 20 reported hacks, up from 15 in 2022 and 9 in 2021.
“Everything starts with trust.”
While much of the discourse in crypto revolves around the myriad benefits of blockchain technology, Dr. Han emphasized the need to delve into more challenging topics. He underscored the importance of addressing security issues, stating, “These are tough discussions, but they are crucial.”
Gate.io, established 11 years ago in response to the MtGox incident, embodies a commitment to security as a foundational principle. Dr. Han highlighted that security is not merely a checklist but an integrated approach, encompassing technology infrastructure, custody solutions, transparency, and adherence to regulatory standards.
Central to any crypto platform is the assurance of secure and dependable on-chain data infrastructure. Dr. Han detailed Gate.io’s approach, highlighting their robust in-house data center bolstered by partnerships with AWS, Huawei Cloud, Microsoft Cloud, and Alibaba Cloud. He emphasized that security forms the foundational bedrock, integrated from the ground up.
Furthermore, Dr. Han pointed out that their data center not only ensures secure data access but also bolsters security through advanced on-chain monitoring and detection capabilities. This proactive stance enables continuous surveillance and swift responses to potential threats, thereby fortifying the reliability and resilience of Gate.io’s services.
Dr. Han underscored Gate.io’s commitment to security with initiatives like Proof of Reserves. “It guarantees that user deposits are backed 1:1,” he explained. “It’s been a cornerstone for us since we led the way in 2020, and we’ve since open-sourced our methodology. Today, this practice is widely adopted across top platforms, but at Gate.io, we’re committed to raising the bar with rigorous reporting standards.”
Dr. Han also stressed the importance of regulatory compliance in the crypto space, indicating that working within the legal framework is essential for the industry’s long-term success and sustainability.
Building Trust Beyond Blockchain
Dr. Han’s presentation at Seoul Meta Week illuminated the pressing need for enhanced security measures and industry collaboration in blockchain and cryptocurrency. By fostering an environment of trust and transparency, and by advocating for stronger regulatory compliance, Gate.io and other industry players aim to fortify the crypto ecosystem and instill confidence in blockchain. As the crypto landscape evolves, the emphasis on security and cooperation will remain instrumental in shaping a robust and trustworthy digital economy.
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