Call for a Cryptocurrency Security Alliance
Lin Han, founder and CEO of Gate, has called for the establishment of a cryptocurrency security alliance aimed at standardizing procedures to prevent and effectively respond to security incidents similar to the $6.3 billion hack that Binance experienced on Thursday.
Industry Response to Security Breaches
In the wake of this multibillion-dollar security breach, the cryptocurrency industry is actively seeking ways to prevent and prepare for future high-profile hacks. Lin Han, whose exchange ranks among the top 10 digital asset platforms by trading volume, emphasized the necessity of standardizing and coordinating security measures to manage incidents like the one faced by Binance, which resulted in approximately $6.3 billion in losses.
“We urge the industry to immediately form a security alliance: unified security standards, intrusion detection protocols, and emergency response systems,” Han stated. “Every crisis presents an opportunity to rebuild trust. This time, we aim to raise the bar higher.”
Proposed Solutions for Enhanced Security
An industry-wide security alliance would facilitate organized efforts to manage such incidents, strengthening connections and communication among companies like Circle and Tether, which froze over $2.3 billion in stablecoins following initial reports of the Binance hack on Thursday afternoon.
In an article posted on X, Gate also proposed a standardized vault approach, where no single party can unilaterally move funds. In this model, each private key is divided among three parties: the individual user, Gate, and a recovery partner. To access and transfer any funds, a threat actor would need to compromise at least two of these parties.
Additionally, vault withdrawals would incur a 48-hour delay, allowing users to freeze funds even if two of the parties are compromised.
“We are open to sharing the architecture behind this—the design principles and the hard lessons learned from real user scenarios—with anyone interested in discussing it,” Gate stated. “If more platforms adopt a similar custody approach, the industry’s security baseline will improve for everyone.”
Support for Affected Platforms
While Gate’s systems were unaffected by Binance’s hack, the company expressed its support, noting that it flagged the relevant addresses and would freeze any illicit funds transferred to its platform.
Several blockchain investigators suggest that North Korea’s Tradertraitor (a sub-unit of the larger Lazarus/DPRK ecosystem) is likely responsible for the approximately $6.3 billion hack.
WRITTEN BY Sergio Goschenko
Sergio is a cryptocurrency journalist based in Venezuela, with over 2,000 articles published and cited in numerous papers and reports.
