Chainalysis noted that Web3 attackers are becoming more creative and the number of hacks impacting exchanges and other FIs is steadily increasing. In many instances, attackers drain an exchange’s wallets, and those of their unsuspecting users as well, resulting in the loss of funds, trust, and considerable reputational damage.
Chainalysis stated that as part of their mission to bring real-time, intelligence-driven security to Web3, they are announcing the launch of Hexagate’s Wallet Compromise Detection Kit, the so-called proactive, behavior-based Web3 security defense tool.
This tool from Chainalysis integrates into wallet flows in order to identify and effectively respond to early signs of wallet-level takeovers from external and internal attackers before they are able to actually drain wallets.
Although existing security solutions such as MPC wallets are able to effectively secure private keys, they are unable to detect whether a transaction is malicious — only if it’s valid within fixed set of rules or parameters.
According to Chainalysis, this is where Hexagate comes in, ensuring users’ keys are not used against them via real-time behavioral monitoring and pre-signing transaction simulation.
Hexagate’s Wallet Compromise Detection Kit reportedly employs highly customizable monitors in order to learn more about how wallets behave over time and adjust dynamically.
Machine learning (ML) models / algorithms are said to augment this with anomaly detection, identifying risk before it actually becomes a substantial loss.
And when alerts occur, Hexagate takes automatic action in order to protect valuable user assets.
Reportedly deployed in minutes and intended to scale with security operations, the Wallet Compromise Detection Kit gives CISOs, SecOps teams, and asset managers the tools they require to detect anomalous behavior. With these tools, the are also able to better enforce protective measures, and try to stay one step ahead of malicious actors.
Chainalysis concluded that losing millions and finding your exchange’s name in the headlines isn’t always the result of poor tech or even recklessness. However, it is one sign that a multi-layered approach to security is “needed to protect yourself against known and unknown threats.”
Web3 security technologies like Hexagate’s Wallet Compromise Detection Kit can enable exchanges to “spot and automatically react to attacks.”