What is a supply chain attack in crypto and how to prevent it?
A supply chain attack in the crypto domain is a cyberattack where hackers target third-party components, services, or software rather than the project itself. By compromising these external dependencies, attackers can insert harmful code or gain unauthorized access, leading to theft or redirection of funds. Crypto's reliance on open-source software and third-party integrations heightens its vulnerability. Attackers might tamper with open-source libraries or breach custodians to manipulate data feeds. In 2024, numerous attacks using open-source repositories like npm and PyPI highlighted this risk, with examples including the bitcoinlib attack and the aiocpa long-term exploit. Preventing such attacks requires proactive measures including dependency management, enhancing infrastructure security, and evaluating third-party vendors. Security practices like locking package versions, code signing, and community vigilance can help mitigate risks, as supply chain attacks can severely impact funds, reputation, and service continuity in the crypto ecosystem.
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