"Cloudflare Outage Hit Crypto Exchanges FTX, Bitfinex And More"

A Cloudflare outage on Tuesday knocked out numerous popular web services, including major crypto exchanges FTX, Bitfinex, and OKX, raising questions about the security of centralized crypto platforms.  Many services affected by the Cloudflare incident were back online within two hours.  The scale of losses caused by the outage is still unclear, but advocates of decentralization have long warned of the risk of keeping one's funds on centralized crypto exchanges, which act as escrows for customers and tout their more user-friendly features.  While centralized exchanges are held accountable by regulators, some argue that they are more susceptible to hacks because they are responsible for large volumes of trades and store most of them on their own servers.  To reduce security risks, it is suggested that users conduct peer-to-peer transactions automated by smart contracts because even when the decentralized exchange is hacked, the funds are in users' self-custodian wallets rather than with the platform.

TechCrunch reports: "Cloudflare Outage Hit Crypto Exchanges FTX, Bitfinex And More"