Exclusive: Fireblocks VP Unveils Cutting-Edge DeFi Security Suite
At Consensus 2024, Matt Zahab of Cryptonews sat down with Shahar Madar, VP of Security and Trust at Fireblocks, to discuss the company’s latest advancements in DeFi security and the groundbreaking Crypto ISAC initiative.
Fireblocks, a leading digital asset management platform, has been at the forefront of providing robust security solutions for institutional clients. Their offerings enable seamless on-chain and off-chain operations. The platform allows institutions to securely self-custody their funds, manage wallets and contracts, trade, and handle off-chain operations. Madar explained,
“Fireblocks serves institutional clients, providing a best-of-breed security platform that supports digital asset management.”
Supporting the company’s aims, Fireblocks recently launched their DeFi Security Suite and introduced the Crypto ISAC initiative, both of which promise to enhance the security framework of the industry significantly. Check out the full interview:
New DeFi Security Suite Launched to Enhance Threat Detection
In April, Fireblocks unveiled its DeFi Security Suite, a significant step forward in addressing security threats in the DeFi space. As the cryptocurrency market gears up for another bull run, institutions face increased risks from scams, phishing attacks, and other malicious activities. Also, DeFi’s growth over the past several years has coincided with more funds lost to hacks and scams, with clever criminals building more sophisticated smart contract tooling contracts to separate victims from their digital assets.
Fireblock’s Security Suite addresses the growing need for security in the crypto space, particularly among institutional players. The suite provides comprehensive solutions to combat scams, phishing, and other threats prevalent in the Web3 environment.
The recent bull market has brought renewed attention to the security challenges faced by institutions. Many traders, especially those from traditional finance backgrounds, struggle with the complexities of the crypto landscape. Recognizing this, the new DeFi Security Suite aims to bridge the gap by offering robust security measures tailored for institutional needs. Madar explained,
“What we see with the Bull Run coming in and the market starting to turn bullish is that institutions, just like any other participants, are facing security challenges. With Web3, there are numerous issues such as scams, phishing, and fake websites. For some traders coming from more traditional backgrounds, it’s hard to navigate these challenges—they don’t know exactly what they’re doing.”
The suite extends the capabilities of the existing Fire DeFi offering. Institutions already utilizing the FIR platform can now direct sensitive operations to be authorized by more senior and knowledgeable individuals. This is achieved through three key mechanisms: scanning decentralized applications, analyzing smart contract data, and simulating transactions. Madar added,
“Everything together enhances the security context, enabling better and more educated decisions. This not only lowers the cost for different operations but also enhances the confidence institutions have with these kinds of operations.”
In the interview, Shahar Madar revealed Fireblocks’ pivotal role as a founding member of the first-ever Crypto ISAC (Information Sharing and Analysis Center). This initiative is a collaborative effort involving industry giants such as Coinbase, Circle, and the Solana Foundation, aimed at creating a unified platform for sharing security insights and combating malicious actors within the cryptocurrency ecosystem.
The Crypto ISAC draws inspiration from similar initiatives in other sectors like aerospace and agriculture, underscoring the need for a governing body to enhance security measures in the crypto industry.
“We’ve been working on this for over a year, and it’s a major step forward for industry security,” Madar said.
Fireblocks Joins Forces to Launch First-Ever Crypto ISAC for Enhanced Security
The launch of the Crypto ISAC signifies a major milestone for the cryptocurrency sector. By bringing together leading industry players, the initiative aims to pool resources and knowledge to create a safer and more resilient crypto environment. This collaborative effort not only bolsters the security of major institutions but also extends high-level security insights to smaller companies, promoting a collective defense against cyber threats.
“Attackers are leveraging every weak link. With everything going more on-chain, we need better clarity and security for end users,” added Madar.
The introduction of these advanced security features and the formation of the Crypto ISAC come at a critical time. The DeFi sector has been particularly vulnerable, with numerous security breaches and scams reported.
In 2023 alone, over $1.1 billion was lost to phishing attacks. Although the volume of stolen funds from DeFi hacks decreased from $3.1 billion in 2022 to $1.1 billion in 2023, data from Chainalysis suggests that the threat remains significant. CertiK’s data indicates that theft volume has already surged back to $500 million in Q1 2024, highlighting the persistent risk posed by phishing websites, dApp takeovers, and supply chain attacks.
Recently, Fireblocks expanded its DeFi suite with new threat intelligence and detection features, addressing the inherent risks associated with on-chain transactions. Fireblocks wrote in its announcement,
“As the DeFi sector experiences unprecedented growth, the need for proactive security measures has never been more critical.”
Moreover, the cryptocurrency industry has seen significant strides in regulatory developments aimed at enhancing security. The European Union’s Markets in Crypto-Assets (MiCA) regulation, expected to be implemented soon, will impose stricter security and transparency requirements on crypto firms, aligning with the objectives of initiatives like Crypto ISAC.
Recent reports also highlight the increasing frequency of cyberattacks targeting decentralized finance platforms. A notable incident involved a major DeFi, Rain Exchange, suffering a significant breach, leading to over $14.1 Million in losses.
These incidents call for urgent improvement in security measures and the establishment of governing bodies to oversee and enforce industry standards.
Consensus 2024
Cryptonews reporters Rachel Wolfson and Matt Zahab were on the ground at Consensus 2024. Talking with industry leaders and pioneers, as well as prominent analysts, they bring you the latest updates from one of the biggest crypto events globally.
