[Coindesk] Crypto Gets Another 'Neighborhood Watch' to Guard Against Hacks

written by Ian Allison, Coindesk

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Justine Bone
Executive Director of
Crypto ISAC

Justine Bone, a cybersecurity firebrand whose research led to recalls of half a million faulty pacemakers, leads the soon-to-launch information-sharing and analysis center (ISAC) for crypto firms.

The cryptocurrency industry, for years plagued by hacks and other malfeasance, has a new group dedicated to cleaning things up, headed by cybersecurity veteran Justine Bone.

Bone is the executive director of Crypto ISAC, the industry's second information-sharing and analysis center, essentially a hub for cybersecurity analysis. A leader in cybersecurity and cryptography for more than 25 years, she was the CEO of medical security research firm MedSec, where her work (in partnership with a short-selling hedge fund) led directly to the U.S. Food and Drug Administration recalling half a million pacemakers that were susceptible to hacking. The devices' manufacturer, Abbott (formerly St. Jude Medical), later issued a firmware update to patch the security holes.

The full roster of Crypto ISAC's founding members, who are providing financial support for the organization, will be revealed on-stage May 29 at CoinDesk's Consensus 2024 in Austin, Texas. Included in the list are two of the biggest exchanges, a major stablecoin issuer, one of the best-known custody firms in the field as well as many other household names in crypto.

“Up until now, there has not been a crypto ISAC and some people are surprised when they learn that,”

Bone said in an interview with CoinDesk. “So a few years ago, some cybersecurity companies who were then joined by some other heavy hitters in the crypto industry, recognized this gap and started organizing."

A similar effort, known as SEAL-ISAC, launched last month. It is led by Samczsun, head of security for the venture capital firm Paradigm. "The SEAL org[anization] has saved over $50,000,000 for crypto users and projects so far," said a spokesperson for SEAL-ISAC, in a May 7 email to CoinDesk.

About $1.7 billion was lost to hackers of crypto platforms in 2023, according to blockchain-sleuthing firm Chainalysis.

Bringing legitimacy

ISACs were introduced as non-profit organizations in the late 1990s to facilitate and legitimize information sharing around cybersecurity vulnerabilities and incidents between public sector and private sector organizations. They are often compared to neighborhood watch programs.

The unveiling of Crypto ISAC, which has been several years in the making, is something of a badge of honor, as it joins the crypto industry with many other established verticals that use information sharing to protect critical infrastructure, such as healthcare, retail, the financial sector, the automotive industry and many more. …

written by Ian Allison, Coindesk

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