Data Breaches and Physical Threats: New Security Challenges in the Web3 Industry

Recently, a well-known cryptocurrency exchange platform experienced a data breach, sparking widespread discussions in the industry about Web3 security. A co-founder of a blockchain security company pointed out that digital asset traders are extremely sensitive to privacy issues because assets can be easily transferred through private keys and are difficult to recover, making them prime targets for criminals.

As on-chain defense technologies continue to upgrade, threats from the physical world are becoming new weak points. According to a report from a security company, phishing attacks have become the most common and impactful attack method on-chain, causing losses of around $1.05 billion last year. This indicates that attackers are shifting from purely technical vulnerabilities to more easily achievable and high-reward methods, such as social engineering and physical threats.

Security experts are calling for the establishment of a broader collaborative network that includes the involvement of technology companies, government agencies, and law enforcement. Only by combining on-chain defenses, data privacy protection, and physical security measures can we respond to this "war of digital and physical intertwining."

Web3 Tycoons Strengthen Personal Security

Before the data breach incident occurred, security companies had already noticed that an increasing number of clients holding large amounts of digital assets began seeking services such as bodyguards. With the rise in kidnapping cases, the concerns of digital asset holders have been growing day by day.

The physical security risks faced by Web3 investors differ from those of traditional finance customers. Public chain networks allow for instant and anonymous asset transfers; once a private key or access is forcibly surrendered, funds can disappear within seconds, almost impossible to recover. In contrast, when traditional bank accounts are stolen, law enforcement agencies can usually take measures such as freezing the account to help recover losses.

Data breaches have further exacerbated these security concerns. Hackers obtaining information such as customer names, addresses, and account balances may use this to track the locations of high-net-worth clients, increasing the risk of physical security threats.

Industry Response Measures

In the face of escalating threats, some governments have begun to take emergency measures. For example, France has established a priority emergency hotline for the Web3 industry and organized elite police units to provide security checks and protection advice for executives and their families.

Some companies related to digital assets have also begun to strengthen security investments for executives. For example, a payment company is expected to spend about $800,000 on personal security for its CEO in 2024, while a trading platform has invested $1.6 million for its CEO.

In addition to bodyguard services, some security companies also offer bulletproof vehicles, home security assessments, and social media monitoring to help clients avoid inadvertently disclosing their location information.

With the rapid development of the Web3 industry, security issues are becoming increasingly complex. Experts emphasize that only through multi-party collaboration, combined with technological protection and physical security measures, can these emerging threats be effectively addressed, ensuring the healthy development of the industry.