Ann: Quarterly Activities Report, page-165

Security of cryptocurrency is not something that had been spoken about or even mentioned in the investment space. It had been assumed that money as in the form of hexadecimal codes and storage of them in the ether space is safe and secure.

The strength of an IT security is as strong as it's weakest link. With so many crypto currency players in the market, it is inevitable that a security breach within a weak computer system will happen. I was in the IT security space and I know how easy it is for a computer network to be compromised. All it takes is a download of malicious computer codes into a computer and the whole computer network will be compromised. Was heavily involved in securing a major bank computer network when a contractor brought in compromised codes through a thumb drive. If a major bank can be compromised what chance does the normal crypto currency investor storing the crypto currency in the computer has against hackers?

The other issue relates to the responsibility associated with the loss. Who will be responsible for the loss. Is it insured? If not, can I trust the ether space (since a personal computer which hold the crypto code or currency is usually connect to the Internet and therefore part of the ether space) to hold my money? This is something that a lot of Bitcoin investors had not think through at all.