Two high-profile security breaches this week – including the biggest cryptocurrency theft in history – are raising questions on the safety of storing funds in a wallet on a crypto exchange.
A security incident at digital asset exchange Binance on Thursday affected some $6.3 billion in client assets, making it the largest crypto theft on record.
Earlier that day, prediction market platform Polymarket temporarily halted trading on its international exchange after a third-party data provider was hacked, resulting in at least $2.7 million being drained from users' wallets. The company's international platform operates on the Polygon blockchain.
Experts whom CNBC interviewed said the security incidents on the crypto exchanges aren't surprising, especially in light of recent artificial intelligence hacking incidents.
Most of these experts even said that observers should expect more security incidents, at least in the near term, as that problem worsens.