Hacks, theft, assaults and exit scams have soared in 2019 with approximately $4.26 billion in reported digital asset losses in the first half of the year, according to data from CipherTrace.
It’s not just professional criminals driving these staggering statistics. Worryingly, CipherTrace’s report indicates that insider thefts were by far the largest offenders, inflicting massive losses on investors and customers.
The Capital Markets industry needs to take action – fast.
“Crypto native” funds are often more at risk than they realise. Traditional funds moving into this space are even more susceptible. Fortunately, there is a robust solution available to combat this accelerating digital crime wave.
Digital asset security specialist “MetaVault” has created Shield, a customised, ultra-secure environment of approved destinations for digital assets, with a workflow and permissioning tool for daily use.
Shield wraps a protective barrier around all elements of the digital trading process – Exchange, Custodian, Broker, Lender, Wallet. Within Shield, activities at each venue are frictionless and as easy, or even easier than before. However as soon as an attempt is made to move funds outside, additional safeguards prevent the transfer from occurring without sign-off from multiple parties.
Before a withdrawal proceeds, multiple signatures are required and collected by Shield. Once these are in place, the transfer is permitted. Signatories can be other team-members, compliance officers and even fund administrators. Different signatories can be mandated according to the risk associated with the destination.
As a result, Shield eliminates the fiduciary risks associated with transferring digital assets.