While exploits in crypto often grab headlines because of the sheer amount of money that gets stolen, Coates emphasized that many of these hacks actually originate outside of blockchain compromises themselves. “In many cases, it is an operational security issue or a Web2 issue that led to a key compromise,” he said.
This will only prove to be more difficult as artificial intelligence advances gives attackers better tools to exploit security practices.
“The social engineering piece is going to get a lot worse because of the power of AI and deepfakes,” Coates said. “We should expect full spoofed phone calls with voices of people that we know… there’s really no reason this won’t hyperscale.
To prevent that, Coates thinks crypto needs to come up with better systems that remain secure and work when people fall for these scams.
“You cannot fully prevent anyone from falling victim,” he said. “Eventually, you will be fooled because the cons…
