Security Negligence an Achilles Heel That Causes Crypto to Lose Billions

Prevention is better than being hacked. Between the tricks of centralized cryptographic exchanges, on the one hand, and the security flaws in decentralized finance smart contracts (Challenge) on the other hand, the digital asset sector is the recurring prey of hackers who do not miss a single opportunity to recover valuable cryptocurrencies. O security auditsin particular, constitute a crucial element for the future of the sector, which must seriously rethink your defense against cyber attacks.

Hacks that cost $1.5 billion in cryptocurrencies in 2023

Unfortunately, rarely goes more than a week or two in the cryptosphere without hearing about a hack from an exchange platform or a DeFi protocol. So, according to Ronghui Guthe co-founder of the cybersecurity company CertiKthese hacks would have already led to the loss of US$1.5 billion of cryptocurrencies this year (as of November 28, 2023).

Recently interrogates by Cointelegraph, the expert also told cryptomedia that he was “inexcusable” that incidents with known causes may still occur, in particular due to lack ofregular security audits.

“It is inexcusable that there are ongoing incidents caused by SIM swap and multisig failures, especially after incidents gave visibility to these security issues. (…) We build very functional and very complicated technologies, and it is important to make security the first concern (…). These hacks and exploits have a significant (negative) impact on cryptocurrency adoption, undermining public trust in the security and stability of digital assets. »

Ronghui Gu, co-founder of CertiK

Many incidents could be avoided if safety was taken seriously

The same observation for Christian Seifertsecurity researcher with Strong Network – company specialized in detecting malicious cyber activities. Also contacted by Cointelegraph, the expert explains that the “safety had to be a priority”and that users must demand this guarantee of protection.

However, it puts into perspective the fact that even if security audits are primordialthey can’t alone solve everything. Crypto projects and companies in the sector should take more into account and, from the beginning, the risks of cyber attacks.

“Security audits are effective, but they are not enough. (…) A comprehensive security strategy is needed that starts with secure design and continues with threat monitoring and prevention solutions. »

Christian Seifert, security researcher at Forta Network

What fright Beginner or hesitant crypto users/investors who are new to the digital asset industry. But, fortunately, the cyber defense is starting to take action to protect cryptocurrencies. Thus, recently, analysis experts on the network in Chainalysis has partnered with global auditing giant KPMG to mitigate the threat and fight cybercrime.

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