Kraken Prioritizes Security and Low Profile for its Security Team
Crypto exchange Kraken is placing a strong emphasis on security by encouraging its security team to maintain a low public profile. According to Chief Security Officer Nick Percoco, the 400-member team is advised not to use social media, as this can expose the company to potential security risks. Only a select few team members are allowed to publicly acknowledge their association with Kraken, while the rest are encouraged to maintain a lower profile due to the frequent targeting of crypto exchange staff by cybercriminals.
Percoco explained that having security team members active on social media can make the company vulnerable to hacks, especially when employees from traditional finance backgrounds change job titles on these platforms. To address these risks, Kraken implemented a policy five years ago stating that employees who don’t need social media for work should not have profiles on these platforms. As a result, less than 5% of Kraken’s security team is publicly known.
Hacking Threats Remain a Major Concern in Crypto
Hacking continues to be a significant threat to crypto companies, with crypto exchanges, DeFi apps, and smart contracts being common targets for hackers. Thefts in the crypto industry exceeded $3.8 billion in 2022, and although there was a 54.3% decline in stolen funds from crypto platforms in 2023 compared to the previous year, hackers still managed to pilfer about $1.7 billion. In January 2024 alone, hackers and fraudsters acquired $126 million through 19 different incidents.
Social media can be weaponized by hackers to launch cyberattacks and phishing scams, compromising a company’s network and leading to the theft of sensitive data. This data can then be misused to breach compliance standards and reveal confidential information, putting employee safety at risk.
Kraken Co-Founder Calls for Self-Policing in Crypto
After a challenging year for the crypto industry, Kraken is taking compliance measures seriously. The exchange faced allegations in the past year of operating without proper registration as a securities exchange, broker, dealer, and clearing agency. Co-founder Jesse Powell has emphasized the need for self-regulation in the industry, as relying on timely protection can be unreliable. He believes that companies like Coinbase, Ripple, and Kraken are still susceptible to scrutiny from regulatory bodies like the SEC, and governments can use questionable operations to tighten crypto regulations.
Hot Take: Kraken Prioritizes Security by Keeping a Low Profile
Crypto exchange Kraken has adopted a proactive approach to security by encouraging its security team to maintain a low public profile. With the prevalence of hacking threats in the crypto industry, Kraken recognizes the importance of minimizing potential risks. By refraining from using social media and limiting public acknowledgments of association with the company, Kraken aims to protect its team members and safeguard sensitive information. This strategy aligns with the broader concern over hacking incidents and phishing scams targeting crypto companies. Kraken’s focus on security and self-policing underscores its commitment to maintaining a secure environment for its users.
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