Litecoin and Bitcoin Exchange Platforms Can be Risky After All

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Litecoin and Bitcoin Exchange Platforms Can be Risky After All
Litecoin and Bitcoin Exchange Platforms Can be Risky After All

Litecoin and Bitcoin Exchange Platforms Can be Risky After All

Despite being called the most secure digital currencies, Bitcoin and Litecoin are said to have been equally vulnerable to theft and fraud if being traded via trading platforms, reflects recent reports. It seems that the companies that provide liquidity in Bitcoin and Litecoin trading platforms are particularly vulnerable. Many of them have indeed been attacked in the past, and the stolen digital currencies were rarely recovered.

Moreover, the legal gray area in which the Bitcoin and Litecoin exchange platforms operate is another risk. Last Monday, Charlie Shrem, the CEO of one of the largest Bitcoins exchange U.S. platforms BitInstant, was arrested on the alleged charged of money laundering and operating unlicensed money transfers. He was released later after posting bail of one million dollars. His crime? To summarize, the Bitcoin platform he provided to individuals was being used for buying illegal goods on Silk Road.

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Meanwhile, Philippe-Antoine Plante, launched a platform for exchanging Bitcoin with Litecoin and Feathercoins the same day. The founder of MORREX also confirmed of no risks being involved in regulating Bitcoins and Litecoins via their exchange platforms in Canada.

Financial Transactions and Reports Analysis Centre of Canada, however, stated that the Bitcoins exchange platforms are not considered money services businesses. Therefore, they would not need to register. Philippe-Antoine Plante, moreover, is willing to cooperate with the authorities.

From the point of view of security, computer science students at the University of Sherbrooke MORREX assured that both Bitcoins and Litecoins are very safe. They also states that 70% of the digital currencies stored are stored offline, so that these funds would be protected in the event of an attack with success. MORREX counts multiple servers in different geographic areas and all user data is ensured to be encrypted.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com