In response to the recent security challenges in the crypto industry, Gate.io founder and CEO Dr. Han Lin delivered a keynote speech at Seoul Meta Week on "Building Trust Beyond Blockchain" to advance discussions on crypto security with leaders in technology, business, and media. He emphasized that strengthening security measures and building digital trust are particularly critical in the current cryptocurrency environment.
Hidden dangers in the encryption field
This candid statement may be surprising coming from the CEO of a major cryptocurrency exchange, but it reflects an indisputable fact. In his speech, Hanlin cited data from Gate.io researchers and Chainalysis to reveal security challenges in the cryptocurrency field. From 2014 to 2024, the most common incidents include carpet-pulling scams (253 incidents), contract vulnerabilities (232 incidents), and flash loan attacks (123 incidents). Notably, up to $8.7 billion worth of cryptocurrency was stolen from the platform between 2021 and 2023 – a significant increase compared to approximately $2.5 billion in the previous three years. Although the total amount of stolen cryptocurrency declined in 2023 compared to the previous year, the number of incidents increased from 219 to 231.
In the past three years, 77% of stolen funds came from Web3 platforms, while 33% came from centralized platforms. Of particular note, North Korean hackers surged in popularity in 2023, with 20 hacking incidents reported, up from 15 in 2022 and 9 in 2021, and losses caused by their attacks reached $3.1 billion, accounting for 36% of the total.
Trust is the foundation of everything
While much of the discussion in the cryptocurrency space has focused on the many benefits of blockchain technology, Hanlin highlighted the need to explore more challenging topics. He specifically stressed the importance of addressing security issues, saying: "These discussions can be difficult, but they are critical."
Gate.io, which was founded 11 years ago, took the MtGox incident as a warning and adhered to the core principle of security. Han Lin emphasized that security is an integrated methodology that is not limited to technical architecture and custody solutions, but also includes transparency and compliance with regulatory standards.
For any cryptocurrency platform, it is crucial to ensure a secure and reliable on-chain data infrastructure. Han Lin elaborated on Gate.io’s security strategy, emphasizing its leading edge in data centers and further strengthening data security through partnerships with AWS, Huawei Cloud, Microsoft Cloud, and Alibaba Cloud. He pointed out that security is the cornerstone of building a platform and needs to be integrated from the underlying architecture.
Han Lin further pointed out that Gate.io data center not only ensures secure access to data, but also strengthens security protection through advanced on-chain monitoring and detection functions. This proactive security strategy enables the platform to continuously monitor potential security threats and respond quickly, thereby enhancing the reliability and risk resistance of Gate.io services.
Han Lin emphasized Gate.io’s commitment to security, achieved through initiatives such as 100% Proof of Reserves. “This initiative ensures that user deposits are 1:1 backed,” he explained. “Since we pioneered this initiative in 2020, it has become a cornerstone of our service. In addition, we have open-sourced the implementation of Proof of Reserves to promote the common progress of the industry. Now that this initiative has been adopted by many platforms in the industry, Gate.io will continue to work hard to promote the improvement of reporting standards and lead the industry to a new level of security.”
Han Lin also highlighted the need to follow regulatory compliance in the cryptocurrency sector, emphasizing that only by working within the legal framework can the industry achieve long-term success and sustainable development.
Building trust beyond blockchain
In his speech at Seoul Meta Week, Han Lin emphasized the importance of strengthening security measures and promoting industry cooperation in the blockchain and cryptocurrency industry. Gate.io and other industry pioneers are committed to jointly promoting stricter regulatory compliance by establishing a high-trust and transparent environment to improve the crypto ecosystem and enhance the credibility of blockchain. As the cryptocurrency field continues to develop, security and cooperation are the solid foundation for building a stable and trustworthy digital economy.
