WazirX Hack serves as a wakeup call for exchanges”: CIFDAQ COO Jay Hao
Former CEO of OKX, Jay Hao, will be joining CIFDAQ, an AI-powered blockchain ecosystem company, as the global Chief Operation Officer (COO) on Thursday. Before taking helm of the affairs, he had a free wheeling discussion with The Crypto Times reporter Gopal Solanky and shared some exclusive insights regarding the recent WazirX hack of Rs 2000 crore and what the web 3.0 industry can learn from the experience.
We have published excerpts from the interview in this article.
1) Many congratulations to you, Mr. Hao, for the new role and responsibilities at CIFDAQ. As the newly appointed Global COO, what will be your agenda with CIFDAQ in the web3 space?
Hao: Thank you very much for the warm welcome! At CIFDAQ, my key focus will be on driving growth through innovation in the Web3 space. We aim to build a robust ecosystem that encompasses everything from blockchain technology to decentralized finance (DeFi), digital assets, and beyond. My agenda revolves around ensuring that CIFDAQ offers an all-in-one platform that addresses the pain points of users, including security, scalability, and seamless integration of products.
2) You have also served as the former CEO of OKX. Tell us why security remains a key component in Web3, DeFi, and the crypto industry? Hao: Security is at the heart of everything in the Web3, DeFi, and crypto sectors. With the decentralized nature of these technologies, the responsibility for safeguarding assets largely shifts from institutions to individuals. This makes robust security protocols essential to protecting user funds and data from exploitation. Unlike traditional financial systems where banks or intermediaries play a central role in managing security, the open nature of blockchain systems means any vulnerability can be exploited at a large scale, as we have seen with multiple hacks over the years.
Speaking of security in the crypto space, I am sure you are familiar with the recent WazirX Hack where an exploiter drained over $239 million funds from a multi-signature cold wallet of the WazirX exchange. What is the learning for the crypto community from this hack?
Hao: The WazirX hack serves as a wake-up call for the entire crypto community, reminding us of the importance of not just technology but also operational security and vigilance. Multi-signature wallets are designed to add an extra layer of security, but they are not foolproof if proper internal controls, auditing mechanisms, and threat detection systems are not in place. A critical lesson from this incident is the need for continuous monitoring and frequent audits of wallet operations. Exchanges must implement multi-layered security architectures that include real-time monitoring for abnormal activities, constant internal auditing, and prompt updates to address potential vulnerabilities.
What do you think the WazirX exchange could have done better?
Hao: WazirX, like any other exchange, could have benefitted from adopting more stringent controls over access permissions and transaction approvals, and an even faster incident response mechanism. Moving forward, the industry needs to prioritize not just building secure systems but also educating the user base on best practices for safeguarding their assets.
4) How do you see the future of the crypto space, in the time frame of, let’s say, the next 10 years? Hao: The crypto space is poised for exponential growth over the next decade. As blockchain technology matures, we will see greater adoption of decentralized systems in various sectors, not just in finance but also in healthcare, supply chain management, entertainment, and governance. The next 10 years will likely bring more regulatory clarity globally, which will further pave the way for mass adoption. We can also expect to see a deeper integration of Web3 technologies with traditional finance systems, where users will have greater control over their financial activities, backed by transparency and decentralization.
CIFDAQ Global COO Jay Hao shares his insights regarding new responsibilities and the WazirX hack.
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