Key Takeaways
- Following Binance’s $6.3 billion hack, Gate’s CEO urged the crypto industry to form a unified security alliance.
- Gate proposed a vault system with split keys and a 48-hour withdrawal delay to boost industry security.
- To support recovery efforts, Gate flagged the hackers’ addresses and will freeze any related funds.
Gate CEO Calls for Global Security Alliance to Secure The Crypto Industry
Following the multibillion-dollar security incident faced by Binance, the crypto industry is already trying to prevent and prepare for the next high-level crypto hack.
Lin Han, founder and CEO of Gate, an exchange ranked among the top 10 digital asset venues by volumes traded, highlighted the need to standardize and coordinate security procedures to manage incidents like the one Binance faced, which encompassed about $6.3 billion in losses.
On social media, Han stressed that as a pioneer of the now industry-standard concept of proof of reserves, which encompasses exchanges regularly sharing their holdings to the public, Gate was compelled to call for the next step after Binance’s hack.
“We urge the industry to immediately form a security alliance together: unified security standards, intrusion detection protocols, and emergency response systems,” Han said. “Every crisis is an opportunity to rebuild trust. This time, we raise the bar higher.”
An industry-wide security alliance would help to organize efforts to manage this kind of incident, he said, strengthening industry links and communication to allow a faster response from companies like Circle and Tether, which froze over $2.3 billion in stablecoins on their own following initial reports of the Binance hack on Thursday afternoon.
In an article posted on X, Gate also proposed standardizing the vault approach, where no single party can move funds unilaterally. In this setup, each private key is split between three parties: the personal one, Gate, and a recovery partner. To access and move any funds, a threat actor would have to compromise at least two of them.
Also, vault withdrawals would face a 48-hour delay, giving the user the possibility of freezing funds even if two of these parties are compromised.
“We’re open to sharing the architecture behind this—the design principles and the hard lessons learned in real user scenarios—with anyone who wants to discuss it,” Gate declared.
“If more platforms adopt a similar approach to custody, the industry’s security baseline rises for everyone,” it concluded.
While Gate’s systems were not affected by Binance’s hack, the company offered its support, stressing that it flagged the relevant addresses and would freeze any illicit funds moved onto its platform.
