Coinbase, Kraken Join New Industry Group to Combat Cyber Threats Over Web3

Cryptojacking, phishing, insider threats, giveaway scams, rug pulls, pig butchering scams, as well as ransomware attacks are among the top cyber threats.

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 30 May 2024 12:32 IST

Coinbase, Kraken Join New Industry Group to Combat Cyber Threats Over Web3

Photo Credit: Reuters

Last year’s losses due to crypto hacks and scams reportedly totaled over $1.8 billion

Highlights

Crypto ISAC is looking to alert Web3 circles of potential cyber threats
The body aims to propagate safe and secured usecases of blockchain
USDC-issuer Circle is also part of this group alongside Coinbase, Kraken

The crypto sector, despite having seen notable expansion in several parts of the world, is still struggling to safeguard its community against cybercrimes. Coinbase and Kraken are among popular crypto firms that have joined a newly formed industry group that intends to figure out ways to combat the cyber threats looming over the sector. The name of this group is Crypto ISAC, which has been created by cybersecurity veteran Justine Bone, who serves as the executive director of this group.

What is ISAC and what are the threats faced by Web3 users?

The ISACs or the Information-Sharing and Analysis Centres (ISACs) are a common type of focus groups across industries. This crypto ISAC plans to onboard influential voices linked to the Web3 sector alongside industry stakeholders to propel safe adoption of blockchain for mainstream use.

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Along with Coinbase and Kraken crypto exchanges, USDC-issuer Circle and blockchain firm The Solana Foundation have also joined the association as one of its inaugural members, the official announcement said.

“Mass adoption of crypto and other digital assets relies on wider public trust in their security. We bring together the industry's top leaders on a mission to drive visibility and reliable action to today and tomorrow's evolving threats,” Bone said in a statement.

As per CertiK, the crypto market saw losses of a total of over $1.8 billion (roughly Rs. 15,015 crore) across 751 security incidents in 2023. Security breaches affecting multiple chains accounted for $799 million (roughly Rs. 6,665 crore) in losses via 35 incidents, highlighting loopholes in cross-chain interoperability.

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Cryptojacking, phishing, insider threats, giveaway scams, rug pulls, pig butchering scams, as well as ransomware attacks are among top cyber threats clouding the global crypto circle – which the crypto ISAC group aims to safeguard the community against through awareness campaigns and more.

How ISAC plans to focus on Crypto, Blockchain?

The group is looking to engage with governments of multiple nations to give them assistance in assessing which crypto threat is most prominent in their regions, while helping them tackle and curb such instances. The member team of the body will be validating all the information being disseminated after threat analysis.

"Establishing a robust organisation to combat security threats, misinformation, and operational threats is crucial to our mission of increasing economic freedom in the world. We are proud to work with partners to foster heightened trust, security, and operational efficiency across the industry,” said Jeff Lunglhofer, Chief Information Security Officer, Coinbase.

Essentially, the ISAC aims to serve as an impartial information broker, providing awareness and information to the Web3 industry especially on cyber security, after employing security measures.

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Further reading: Cryptocurrency, Crypto, Cyber Threats, Coinbase, Kraken, Circle

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More