Cloudflare CEO says crypto exchanges are a popular target for cyber attackers

Cryptocurrency exchanges have turn out to be a popular target for cyber criminals, Cloudflare CEO Matthew Prince instructed CNBC’s Jim Cramer on Monday.

“The old adage is, Why do bank robbers rob banks? It’s because it’s where the money is,” Prince mentioned in an interview on “Mad Money.” “One of the biggest places that cyber attackers are going after right now are the various cryptocurrency exchanges and other cryptocurrency parts of the universe.”

Cryptocurrencies attracted consideration in connection to cyber crimes earlier this yr after high-profile ransomware assaults, most notably the Colonial Pipeline incident in May that temporarily disrupted fuel supply in elements of the East Coast.

Colonial Pipeline ended up paying $5 in ransom in the future after its IT community was hacked, though U.S. legislation enforcement officers were able recover nearly half of the bitcoin that the legal cybergroup acquired.

The occasions ignited debate across the position that the blockchain-based digital currencies play in the rise of ransomware attacks. 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 ago, affords net community infrastructure to corporations, permitting them put their content material on-line. Cloudflare additionally offers safety providers to stop what are often known as 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 more and more innovation from attackers in that space, but we are staying ahead 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 via a crypto alternate that’s a Cloudflare buyer. Cramer, who has invested in cryptocurrencies, instructed Prince he is personally involved “there will be a hack and my money will vanish.”

“We’re proud of the fact that we’ve kept the cryptocurrency customers that are ours secure and safe and helped augment the additional protections that they have in place,” Prince instructed Cramer. “I’d feel safe using any of the cryptocurrency exchanges that uses Cloudflare today.”

CNBC has reported previously on particular person crypto traders who had their Coinbase accounts hacked.

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