Credit Suisse Fail
Credit Suisse, a Swiss multinational investment bank and financial services company, failed to secure its clients’ cryptocurrency holdings in early 2020. On January 21st of that year, the bank suffered an outage on its online banking platform due to a “technical issue”. As a result, Credit Suisse customers were unable to access their cryptocurrency wallets as well as other accounts within the system for several hours. The exact cause of this failure is still unknown but some suspect it could have been related to malicious attacks or technical glitches at the server level.
The incident had widespread implications throughout the digital currency industry with many investors losing confidence in traditional banks when it comes to storing cryptocurrencies securely due to perceived security flaws. In response, some exchanges such as Binance began offering insurance policies covering losses from hacks and theft which further increased investor trust in digital assets stored with them over traditional institutions like Credit Suisse who are not able offer similar protection measures yet.
There is no doubt that this event was damaging for both Credit Suisse’s reputation and public perception of crypto-assets held by banks overall; however there has since been proactive steps taken by major exchanges around world providing additional layers of security protocols leading into 2021 which should help restore user confidence moving forward .
