Kraken
announced
that
it
has
co-founded
the
Blockchain
Security
Standards
Council
(BSSC)
with
several
other
major
industry
players
to
enhance
security
within
the
crypto
sector.
The
other
co-founders
include
Anchorage
Digital,
Coinbase,
Fireblocks,
Bastion,
Figment,
Halborn,
OpenZeppelin,
Ribbit
Capital,
and
Sentinel
Global.
Consensus-driven
security
The
nonprofit
organization
aims
to
create
uniform
security
standards
across
the
crypto
industry,
addressing
pressing
security
threats
such
as
fraud,
nation-state
cyberattacks,
and
protocol
exploitation.
The
council’s
mission
is
to
develop
consensus-driven
security
benchmarks
and
a
robust
audit
process
by
the
end
of
2024.
These
efforts
are
expected
to
fortify
the
industry’s
security
framework
and
enhance
trust
in
digital
assets.
Kraken
Chief
Security
Officer
Nick
Percoco
emphasized
the
importance
of
these
initiatives,
stating:
“Voluntary
security
standards
are
crucial
for
the
maturation
of
the
crypto
industry.
Collaborative
efforts
among
industry
players
to
strengthen
the
overall
ecosystem
will
enhance
confidence
in
cryptoassets.
Kraken
is
proud
to
contribute
to
the
development
of
these
essential
standards.”
The
BSSC
also
plans
to
engage
with
regulators
and
policymakers
to
ensure
the
development
of
balanced
and
effective
security
standards.
This
proactive
engagement
aims
to
protect
consumers
while
fostering
innovation
within
the
blockchain
ecosystem.
Kraken’s
involvement
in
the
BSSC
reflects
its
ongoing
commitment
to
security,
following
its
role
in
establishing
the
Crypto
Information
Sharing
and
Analysis
Center
(ISAC).
The
ISAC
facilitates
knowledge
sharing
and
best
practices
across
the
crypto
sector,
aiming
to
reduce
cybersecurity
risks
and
enhance
the
industry’s
overall
resilience.
The
formation
of
the
BSSC
is
seen
as
a
significant
step
towards
addressing
the
blockchain
trilemma,
which
involves
balancing
decentralization,
security,
and
scalability.
By
focusing
on
security
standards,
the
BSSC
aims
to
mitigate
risks
while
supporting
the
growth
and
scalability
of
blockchain
networks.
White-hat
drama
The
move
comes
in
the
wake
of
Kraken’s
recent
dispute
with
blockchain
security
firm
CertiK.
In
June,
the
exchange
encountered
a
major
security
challenge
when
blockchain
security
firm
CertiK
uncovered
a
critical
vulnerability
in
its
system.
This
flaw
enabled
attackers
to
initiate
deposits
and
receive
funds
without
completing
the
deposit
process,
effectively
allowing
the
creation
of
assets
from
nothing.
CertiK
exploited
this
vulnerability
to
withdraw
$3
million
from
Kraken’s
accounts,
which
led
to
many
claiming
that
the
withdrawals
were
too
excessive
for
testing
purposes.
Kraken
also
accused
CertiK
of
extortion,
arguing
that
the
firm
demanded
payment
for
the
return
of
the
funds,
deviating
from
standard
bug
bounty
protocols.
The
exchange
criticized
CertiK’s
approach,
alleging
it
held
the
funds
hostage
and
acted
unprofessionally.
However,
CertiK
denied
any
malicious
intent,
asserting
that
its
actions
were
preventive
and
aimed
at
securing
the
platform.
It
contended
that
Kraken’s
threats
towards
CertiK
employees
were
unwarranted
and
emphasized
that
it
had
offered
to
return
the
funds,
but
the
exchange
had
not
provided
a
wallet
address.
The
dispute
was
settled
after
both
firms
went
public
with
their
sides,
and
CertiK
returned
the
funds
to
addresses
it
had
on
hand.
Mentioned
in
this
article
Go to Source
Author: Assad Jafri
