It is estimated that organizations lose 5% of revenue to fraud each year, with an average loss of $1.7 million dollars. Asset misappropriation, or the unauthorized use of an organization’s assets for personal gain, accounts for 89% of those cases. In almost every case, the existence of controls reduces the overall loss and duration of the fraudulent act. That’s important to know, especially if your organization is considering adding bitcoin or other cryptocurrencies to its balance sheet as the unique challenges and opportunities of cryptocurrencies require new and different approaches to asset security that may not exist with other common assets. Once crypto assets are spent, they can never be recovered,
As organizations explore crypto assets, relying solely on traditional control methods may not suffice. By understanding the unique factors at play and adopting the following strategies, organizations may be able to better protect their crypto assets.
- Strategic Objectives – Define clear investment goals, align decisions with business strategy, and implement risk management measures.
- Secure Methods & Wallets – Choose between custodial and non-custodial wallets, with options like multi-signature (Multi-Sig) and Multi-Party Computation (MPC) wallets for enhanced security.
- Private Key Management – Secure private keys using hardware wallets, cold storage, and vaults while minimizing exposure to online risks.
- Security Infrastructure & Management – Strengthen cybersecurity with firewalls, encryption, multi-factor authentication, vendor management, and incident response plans.
- Audits & Accountability – Conduct regular audits using blockchain explorers, reconciliation procedures, and independent reviews to ensure transparency and compliance.
- Risk Management & Volatility – Diversify custodians, balance centralized and decentralized exchange usage, and implement market research and contingency plans.
By adopting these strategies, organizations can enhance the security, compliance, and resilience of their crypto assets.
https://www.forvismazars.us/forsights/2025/03/key-considerations-for-protecting-crypto-assets
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