Crypto & Web3 Security
Web3 and cryptocurrency companies face unique security challenges: smart contract vulnerabilities, key management, regulatory uncertainty, and sophisticated threat actors targeting digital assets. We help crypto companies build security programs that protect assets, satisfy institutional partners, and navigate evolving compliance requirements.
How We Engage with Crypto Companies
Our Fractional CISO Approach for Crypto & Web3
Most crypto companies engage a Fractional CISO to provide strategic security leadership without full-time overhead. We understand the unique technical and regulatory landscape and help you build programs appropriate for your stage and risk profile.
What This Looks Like for Crypto Companies:
We understand Web3-specific security challenges, from smart contract risks to key management to the threat actors specifically targeting this industry. Crypto-specific priorities include:
- Key management and custody with proper controls, separation of duties, and recovery procedures
- Smart contract security integration with development processes and third-party audit coordination
- Threat intelligence awareness of crypto-specific attack patterns and threat actors
- Regulatory positioning with security programs that support compliance across evolving requirements
- Institutional readiness with SOC 2 and security documentation for banking and enterprise partnerships
Security Challenges Unique to Crypto & Web3
Key Management Complexity: Private keys control assets. Key management must balance security (keys can't be compromised) with availability (legitimate operations must continue) and resilience (keys can't be lost). Multi-signature schemes, hardware security modules, and key ceremony procedures add complexity.
Smart Contract Risk: Code is law, but code has bugs. Smart contract vulnerabilities have led to billions in losses. Security programs must include comprehensive audits, formal verification where appropriate, and upgrade/pause capabilities for when issues are discovered.
Sophisticated Threat Actors: Crypto attracts nation-state actors, organized crime, and highly skilled individual attackers. The industry sees social engineering specifically designed for crypto (fake job offers, compromised dependencies, targeted phishing). Security programs must account for this elevated threat environment.
Regulatory Uncertainty: Regulations vary by jurisdiction and continue evolving. Security programs should position companies to demonstrate compliance readiness across potential regulatory frameworks, whether securities law, money transmission, or emerging crypto-specific regulations.
Third-Party Risk: Crypto operations depend on exchanges, custodians, bridges, oracles, and other third parties. Each introduces risk. Comprehensive third-party risk management is essential, including security assessments and contractual protections.
Security Fundamentals: Beyond crypto-specific concerns, Web3 companies must address foundational security practices: consistent MFA enforcement, patch management, secure credential storage, application security vulnerability remediation, and SaaS hardening. These basics are often overlooked in fast-moving crypto environments but remain essential to overall security posture.
When Should Crypto Companies Engage Security Leadership?
Crypto and Web3 companies operate in a high-threat environment. Here are signs you need security leadership now:
Asset Protection Signals:
- Managing significant treasury or customer funds without formal security program
- Key management practices that depend on individual employees
- Smart contracts deployed without comprehensive security review
- No formal incident response plan for potential exploits or hacks
- Bridge or cross-chain operations without additional security controls
Business & Partnership Signals:
- Institutional investors or partners requiring security assessments
- Banking partners asking about security and compliance programs
- Enterprise customers requiring SOC 2 or security documentation
- Insurance applications requiring detailed security information
- M&A due diligence revealing security program gaps
Regulatory Signals:
- SEC, CFTC, or state regulator inquiries about operations
- Uncertainty about which regulations apply to your products
- Need to demonstrate compliance readiness to partners or investors
- Operating in or expanding to jurisdictions with crypto-specific regulations
- Token launches or new products with unclear regulatory status
Operational Signals:
- Engineering team making security decisions without formal oversight
- No dedicated security function or clear security ownership
- Rapid growth outpacing security program development
- Remote-first team without clear security policies
- Third-party integrations (exchanges, custodians, oracles) without security assessment
If several of these apply, you're carrying significant risk that threatens assets, partnerships, and business continuity.
Common Questions About Crypto Security
Do crypto companies need SOC 2 certification?
Increasingly, yes. Institutional investors, banking partners, and enterprise customers often require SOC 2 reports. For companies seeking to work with traditional finance or serve institutional clients, SOC 2 demonstrates security maturity in terms these partners understand. It's also valuable for regulatory positioning.
How do we approach security for smart contracts?
Smart contract security should be integrated throughout development, not just a pre-launch audit. This includes secure development practices, comprehensive testing, formal verification where appropriate, and ongoing monitoring. For audits, we partner with leading specialized firms to perform comprehensive smart contract reviews. Having upgrade and pause capabilities provides options when issues are discovered.
What key management practices should we implement?
Key management should include multi-signature requirements for significant transactions, hardware security modules for critical keys, clear separation of duties, documented key ceremony procedures, secure backup and recovery processes, and regular access reviews. The specific implementation depends on your use case and risk tolerance.
How do we handle security with a remote-first team?
Remote-first security requires clear policies, secure access management, endpoint security controls, and security awareness training tailored to remote work risks. For crypto specifically, this includes protecting against social engineering attacks that target remote employees and ensuring secure key access regardless of location.
Have more questions?
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