It's probably old news by now that Binance was hacked for over $6 billion and the usual culprit is the North Korean hackers.
But you know binance, the story right now is that your funds are SAFU.
How did it happen?
Apparently some engineer's laptop was compromised. Quite interesting how one laptop can lead to -$6 billion leaving a platform and we preach security everyday in this industry.
Quite comical, isn't it?
Initially, I did not want to talk about this hack because there was really nothing interesting about it.
But something else led to this post.
That something else is what the future might look like for every financial institution, especially now that AI is in the picture.
I know that companies are investing in AI-powered security systems for their platforms but at the same time, I do not think that traditional finance is built to withstand what's coming.
If the biggest crypto exchange can be hacked for over $6 billion (that's a lot of money by the way), then nobody is too big to be hacked!
Bad actors will use AI agents to carry out highly sophisticated attacks on numerous financial institutions, I'm not sure the economy is prepared for what those attacks will translate to.
I want to believe that crypto assets are a great alternative to maintain stability but that would require limiting any layers of custody that relies on centralized systems.
Decentralized distribution is the only chance at limiting the risks of any great damage.
We also have to consider that hacks are not the only forms of attack that can cause great damages. Simply disrupting normal operations across financial systems is enough to cause financial ruins that can impact several economies, severely in the short and long term.
That's a future not many are currently prepared for!
Posted Using INLEO
