Execution risk in crypto is the new custody risk
Execution risk in crypto is the new custody risk. Live credentials, not just private keys, are now the main attack surface.
Opinion by: Ido Sofer, founder and CEO at Sodot.
The crypto industry is normally well ahead of its game when it comes to pure innovation and functionality, but security is a different matter.
For years, custody risk in crypto was defined by a single fear: the theft of private keys. The industry responded by hardening storage with cold storage, air-gapped systems, MPC and other methods. It then recognized that protecting only the keys is not enough, introducing transaction security and policies to prevent malicious transactions that steal funds, although the keys remain safe. Both of these remain a serious threat, but focusing solely on private keys obscures a deeper shift.
