Crypto Fund Urges Industry-Wide Secure Custody Solution Post Bybit Hack
1min read The Pacific Water Drop Digital Asset Quantitative Fund has recently recommended that the entire cryptocurrency industry adopt a more secure and compliant solution for asset custody. The fund suggests that all cryptocurrency assets should be custodied with a third-party licensed institution to mitigate potential security threats, as seen in the recent Bybit hack.
The fund's proposed solution involves conducting trading on a top-tier trading platform while keeping all encrypted assets with a third-party licensed institution. This approach ensures institutional-grade security custody and minimizes the risk of asset loss. The fund's trading platform account and custody institution employ an asset mapping mechanism, further enhancing the security of fund assets even in the event of a trading platform breach.
The fund's recommendation comes in response to the recent Bybit hack, which highlighted the importance of robust security measures in the cryptocurrency industry. By adopting this solution, the fund aims to protect its assets and set an example for the industry to follow.
The fund's trading operations were unaffected by the Bybit hack, demonstrating the effectiveness of its security measures. As the cryptocurrency industry continues to grow, it is crucial for all participants to prioritize the security and compliance of their operations to maintain investor confidence and protect against potential threats.
