Crypto betting pioneer Cloudbet urges companies across the industry to continue to revisit all protocols in the wake of Stake’s loss of $41M to an apparent hack.
“In many ways, an attack on one is an attack on all, and this industry only thrives if our users know with all possible certainty that their funds are safe and secure,” a Cloudbet spokesperson said. “This incident is a reminder that the industry must continuously put in place the most robust security protocols possible.”
Since its launch in 2013, Cloudbet has been at the forefront of security in the crypto gaming industry. In that time, the operator has securely processed hundreds of millions of transactions, and many of Cloudbet’s security measures have since become standard practice industry-wide.
Cloudbet’s Multi-Layered Security Architecture
Cloudbet security is built on a multi-layer system of safeguards underpinned by hot and cold wallet storage, multi-signature approvals, and multi-party computation (MPC), along with various added measures to protect player funds:
- Cold storage of all customer funds.
- Multi-party computation (MPC) wallets.
- Multi-signature approvals on all fund transactions.
- Additional layers of approval and two-factor authentication (2FA) for larger transactions.
- Highly secure, physically distributed management of private keys and recovery codes.
- Sophisticated circuit-breaker protocols based on real-time reconciliation of withdrawals with product accounts.
In addition, every quarter, Cloudbet conducts internal fire drills to strategize, practice contingency plans, and update those plans to keep ahead of the latest industry security standards.
“While incidents like Stake’s are rare, we must all remain vigilant to maintain the trust that users have been placing in us on a daily basis for the last 10 years,” the Cloudbet spokesperson said.
“We are firm believers that crypto is pioneering an exciting new world of financial freedom, and that gaming and betting can help lead that effort. But we also believe that in order for us to realize that world, we have to put security at the front line of crypto. No matter how flashy and glamorous the Premier League is, players aren’t safe to play without some very serious on-field security.”