Crypto Firms Must Tighten Security Measures to Combat Malicious Code, Says Exodus CEO

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Crypto companies need to be more vigilant about the code they integrate into their platforms, according to JP Richardson, CEO of self-custodial platform Exodus. Speaking at the Token2049 conference in Singapore, Richardson stressed that every piece of code, no matter the source, must undergo thorough external reviews before being implemented.

This approach, he argued, is critical to protecting both the platform and its users from potential cyber threats, particularly as bad actors become more sophisticated in their infiltration techniques.

Growing Threat of Malicious Actors

Richardson’s remarks come in the wake of an alarming rise in malicious actors infiltrating crypto firms. He pointed out that some bad actors have gone as far as securing jobs within these companies by posing as legitimate engineers. Their aim is often to introduce harmful code into the firm’s software, creating significant security vulnerabilities. Richardson explained:

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“Bad actors are becoming more skilled at tricking firms into trusting them, and this is why a robust review process is essential.”

He added that companies should never rely solely on the trustworthiness of individual engineers but must implement a comprehensive second-layer review process for all software updates.

Prioritizing Customer Safety

The Exodus CEO emphasized that the safety of customers’ data should always be the top priority for crypto firms. He noted that building a resilient operational system is the only way to ensure that even if malicious code is introduced, customer data remains secure. “It really comes down to building a system so that if a breach does occur, your customers are still safe,” Richardson said.

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At Exodus, the security team reviews every code submission, regardless of whether it comes from internal staff or new engineers. “We never assume that a trusted engineer’s work is beyond scrutiny. Every update goes through the same stringent review process,” Richardson emphasized.

North Korean Cyber Threats

Richardson’s comments are also in line with a broader conversation in the crypto community about the rising threat of North Korean hackers. Recently, blockchain investigator ZachXBT uncovered a network of North Korean developers, some earning up to $500,000 monthly from established crypto projects. These hackers used fake identities to infiltrate firms and push malicious code into their systems.

The FBI also recently warned crypto firms about North Korean hackers targeting decentralized finance (DeFi) platforms and exchange-traded funds (ETFs). These bad actors are leveraging complex social engineering tactics to gain access to sensitive information and financial systems, further underscoring the need for robust security practices.