Cryptocurrency exchanges lost nearly $170 million in 2019 and they’re still vulnerable

There are few images as gripping as that of Kolin Burges holding up the placard reading “Mt. Gox, Where Is Our Money,” in the midst of the collapse of the largest Bitcoin exchange in the world. This image of the beanie-headed Londoner on the streets of Tokyo defined the state of cryptocurrency exchanges for much of the past decade.

While some argue that the situation of exchange hacks and security breaches have improved, the cases of Gerald Cotten’s mysterious death and Lei Guorong’s disappearance points to the contrary. While QuadrigaCX and IDAX pose Hollywood-esque scripts, the larger issue surrounding them is a recurring problem within the cryptocurrency industry.

Over and Over again

It wasn’t just the small-fry exchanges that saw its funds siphoned away, even the big-fish were caught unaware. From DragonEx to Binance, over 10 exchanges were hacked in 2019 alone, with the total coins lost amounting to $170 million, according to Bobby Ong, co-founder of…