Ethical hacker forms Security Alliance to protect crypto projects

crypto news Web3 urgently needs a paradigm shift in its security approach05

A popular cybersecurity expert known by the pseudonym Samczsun has created a new alliance of white-hat hackers to protect crypto projects from the growing risks of cyber attacks.

Samczsun, who works for the digital-asset investment company Paradigm, has named the venture Security Alliance and made it a non-profit entity. Several developers and crypto leaders across the industry have collectively praised this initiative on social media.

Security Alliance has received over $1 million in contributions from crypto investors and ventures, including Andreessen Horowitz’s crypto arm, Electric Capital, Paradigm, and key industry bodies like the Ethereum Foundation. Notably, Ethereum co-founder Vitalik Buterin has contributed $500,000 to the alliance.

Ethical hackers, also known as white-hat hackers, delve into the code of various projects to identify and report vulnerabilities and bugs to the creators, often receiving compensation for their efforts.

Many, including Samczsun, remain anonymous due to concerns over retaliation from malicious hackers after exposing security flaws. According to blockchain analysis company Chainalysis, cyberattacks led to approximately $1.7 billion in theft from cryptocurrency ventures in 2023.

In their social media post, Samczsun highlighted the limitations faced by cybersecurity professionals during the 2022 breach of the Nomad crypto communication protocol. Many experts were unable to assist due to cautionary advice from their employers.

The Nomad incident was unique because it unfolded over several hours, allowing multiple attackers to replicate the initial breach and exploit a vulnerability, ultimately leading to a nearly $200 million theft. Samczsun believes that the involvement of white-hat hackers could have mitigated the loss significantly

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