Prominent Crypto Figures Rally Behind New Cybersecurity Standards Following Approximate $4 Billion Loss to Hacks in 2022

**CAT Labs Launches Initiative to Combat Crypto Hacking**

Amid the numerous challenges faced by the crypto industry, hacking remains one of the most significant obstacles. Despite a bear market, last year witnessed a historic increase in stolen funds, with cybercriminals making off with almost $4 billion, according to Chainalysis, an analytics firm.

**CAT Labs, Backed by Prominent Names, Takes a Stand**

CAT Labs, a non-profit organization dedicated to combating crypto crimes, has launched an initiative in response to the growing problem of hacking. The effort has received support from notable backers, including Fireblocks, a digital asset custody provider, Amphibian Capital’s crypto fund of funds, and Lockton, an insurance giant. In an interview with Fortune, Lilita Infante, the founder of CAT Labs and a former special agent at the US Department of Justice, stated that she established the initiative after receiving numerous inquiries from investors and insurance companies seeking to mitigate cybersecurity risks. These risks had become a roadblock for them when considering collaboration with crypto firms. As CAT Labs is primarily focused on digital asset recovery, it frequently interacts with companies that have suffered financial losses through hacks.

**Crypto Industry Requires Unique Cybersecurity Certifications**

The crypto industry requires specific cybersecurity certifications to address its distinctive vulnerabilities. While certifications such as SOC and ISO standards serve as a quick way for companies to secure funding and underwriters, these certifications are not adequate for the crypto sector. Many cyberattacks targeting the industry exploit vulnerabilities not covered by existing certifications, such as the management of private keys and multifactor authentication for signing transactions.

The CryptoCurrency Certification Consortium (C4), however, has developed a more tailored standard known as CCSS. Deloitte, a consulting giant, and Halborn, a cybersecurity firm, have both been trained as certifiers for this standard. Nevertheless, CCSS adoption within the crypto industry remains limited.

**Pushing for a Common Standard**

Infante argues that during the bullish market, investors focused on financial gains rather than pushing potential portfolio companies to adopt CCSS. She believes that now, with the market having calmed down, it is essential to evaluate and address the major challenges facing the industry. While CCSS may not directly address frequent sources of crypto hacks, such as code exploits and protocol attacks, it is effective in mitigating risks associated with private key management. Infante hopes that the initiative will help CCSS become the industry’s “gold standard.” She is partnering with C4 to advance cybersecurity standards, with the goal of attracting greater involvement from insurance companies and venture firms that are concerned about the risk of hacks. Furthermore, this effort could help appease regulators, such as the Commodity Futures Trading Commission, which has begun focusing on the cybersecurity risks posed by crypto firms.

**Industry Leaders Support the Initiative**

Fireblocks CEO Michael Shaulov stated in a statement shared with Fortune that initiatives like these are crucial in establishing the necessary security infrastructure for digital asset custodians, crypto hedge funds, and other businesses in the industry.

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