Acquired Exchanges Bring Hidden Security Risks

Crypto exchange acquisitions can bring more than just market share to buyers, they also inherit potential security flaws that can prove costly.

Changpeng Zhao, known as CZ, has warned that buying a smaller exchange can lead to inheriting legacy systems with outdated code and security weaknesses built over many years.

This can become a liability for the buyer, requiring significant time and money to fix or even making it cheaper to rebuild parts of the platform.

CZ pointed out that hackers often target smaller exchanges due to their limited resources and lack of protection compared to larger competitors.