Cryptocurrency exchanges have develop into a popular target for cyber criminals, Cloudflare CEO Matthew Prince instructed CNBC’s Jim Cramer on Monday.
“The previous adage is, Why do financial institution robbers rob banks? It’s as a result of it is the place the cash is,” Prince mentioned in an interview on “Mad Money.” “One of the most important locations that cyber attackers are going after proper now are the assorted cryptocurrency exchanges and different cryptocurrency components of the universe.”
Cryptocurrencies attracted consideration in connection to cyber crimes earlier this 12 months after high-profile ransomware assaults, most notably the Colonial Pipeline incident in May that briefly disrupted gasoline provide in components of the East Coast.
Colonial Pipeline ended up paying $5 in ransom sooner or later after its IT community was hacked, though U.S. regulation enforcement officers have been in a position get well practically half of the bitcoin that the prison cybergroup obtained.
The occasions ignited debate across the function that the blockchain-based digital currencies play within the rise of ransomware assaults. Some argue that cryptocurrencies allow ransomware incidents, whereas others say the very fact transactions are recorded on public ledgers may be useful in fixing cyber crimes.
Cloudflare, which went public two years in the past, presents internet community infrastructure to corporations, permitting them put their content material on-line. Cloudflare additionally offers safety providers to stop what are often called distributed denial of service assaults.
Some of its purchasers are cryptocurrency exchanges, Prince mentioned, giving the corporate a “front-row seat” to the evolving cyber threats they face. “We’re watching increasingly innovation from attackers in that house, however we are staying forward of it,” he added.
Prince’s feedback Monday got here in response to a query from Cramer, who requested whether or not the chief would really feel protected investing by way of a crypto trade that’s a Cloudflare buyer. Cramer, who has invested in cryptocurrencies, instructed Prince he is personally involved “there might be a hack and my cash will vanish.”
“We’re happy with the truth that we have stored the cryptocurrency prospects that are ours safe and protected and helped increase the extra protections that they’ve in place,” Prince instructed Cramer. “I’d really feel protected utilizing any of the cryptocurrency exchanges that makes use of Cloudflare at present.”
CNBC has reported beforehand on particular person crypto buyers who had their Coinbase accounts hacked.