Cryptocurrency exchanges have become a popular target for cybercriminals, Cloudflare CEO Matthew Prince told CNBC’s Jim Cramer on Monday.
“The old adage is,‘ Why do bank robbers rob banks? That’s because that’s where the money is, “Prince said in an interview with” Mad Money. ” .
Cryptocurrencies drew attention in relation to cybercrime earlier this year following high-profile ransomware attacks, most notably the Colonial Pipeline incident in May that temporarily disrupted the supply of fuel to parts of the world. east coast.
Colonial Pipeline ended up paying $ 5 in ransom a day after hacking its IT network, even though U.S. police officials were able to recover nearly half of the bitcoins the criminal cybergroup received.
The events ignited the debate about the role that blockchain-based digital currencies play in increasing ransomware attacks. Some argue that cryptocurrencies allow for ransomware incidents, while others say that recording transactions in ledgers can be helpful in resolving cybercrime.
Cloudflare, which went public two years ago, offers web networking infrastructure to businesses, allowing them to put their content online. Cloudflare also provides security services to prevent what are known as distributed denial of service attacks.
Some of its customers are cryptocurrency exchanges, Prince said, giving the company a “front-row seat” to the evolving cyber threats they face. “We are seeing more and more innovation from the attackers in this space, but we stay ahead,” he added.
Prince’s comments Monday responded to a question from Cramer, who asked if the executive felt safe investing through a cryptocurrency exchange that is a Cloudflare customer. Cramer, who has invested in cryptocurrencies, told Prince that he is personally concerned: “There will be a hack and my money will disappear.”
“We’re proud that we’ve kept our cryptocurrency customers safe and secure and helped increase the additional protections they have,” Prince told Cramer. “I would feel safe using any of the cryptocurrency exchanges that Cloudflare uses today.”
CNBC has previously reported on individual cryptocurrency investors who had hacked their Coinbase accounts.