Following Binance's $6.3 billion security incident, Lin Han, founder and CEO of Gate, has called for the cryptocurrency industry to form a unified security alliance with standardized procedures and coordinated response systems.
Han stressed the need to establish industry-wide standards for intrusion detection and emergency response management. "We urge the industry to immediately form a security alliance together: unified security standards, intrusion detection protocols, and emergency response systems," Han said on social media. "Every crisis is an opportunity to rebuild trust. This time, we raise the bar higher."
Gate, ranked among the top 10 digital asset exchanges by trading volume, has been an early adopter of proof of reserves, a practice where exchanges publicly share their holdings. The company positioned its security alliance proposal as the next step in building industry trust.
Proposed Security Framework
Gate has proposed standardizing vault approaches where no single party can unilaterally move funds. Under this model, private keys would be split between three parties: the user, Gate, and a recovery partner. Accessing and moving funds would require compromising at least two of the three parties.
Additionally, Gate suggested implementing a 48-hour withdrawal delay on vault withdrawals. This delay would allow users to freeze funds even if two of the three key-holding parties were compromised.
"We're open to sharing the architecture behind this—the design principles and the hard lessons learned in real user scenarios—with anyone who wants to discuss it," Gate stated. "If more platforms adopt a similar approach to custody, the industry's security baseline rises for everyone."
Industry Response to the Breach
Following initial reports of Binance's hack on Thursday, companies like Circle and Tether moved to contain potential fallout by freezing over $2.3 billion in stablecoins, demonstrating the interconnected nature of the cryptocurrency ecosystem.
Gate confirmed its systems were not affected by the Binance incident and offered support by flagging relevant addresses associated with the hack and committing to freeze any related illicit funds moved to its platform.
