How Kevin Rose is Updating His Wallet Security Post Hack
Kevin Rose, CEO and co-founder of non-fungible token (NFT) collective Proof, recently suffered a hack in his personal NFT wallet. In response, he has devised a new system to better protect his accounts, of which the NFTs alone was previously estimated to be worth millions of dollars.
40 NFTs Gone
Just a week ago, Kevin Rose shared on Twitter that his NFT wallet was hacked, resulting in the theft of 40 NFTs, including one Autoglyph and 25 Chromie Squiggles, among others. Despite using theft prevention tool Revoke Cash, the scammer was able to bulk-transfer the tokens out of Rose’s wallet. Efforts have been made to retrieve the stolen NFTs and flag them on OpenSea.
New Security Protocol
Post hack, Rose has introduced a new security protocol that involves the use of four different wallet types, each serving a specific purpose. The “Hot” wallet is intended for daily interactions and holds low-value assets, while the “Warm” wallet stores NFTs that may be traded locally, with a value of less than 10E. The “Sale” wallet is created specifically for high-value NFT sales or transactions, and the “Cold” wallet holds high-value NFTs for long-term storage.
The Warm wallet can connect directly to trusted exchanges or pre-vetted websites. This wallet is designed for more active trading, but with the added protection of being able to connect only to trusted sources. Sale wallets communicate directly with trusted exchanges for listing purposes, avoiding third-party websites, which are more susceptible to hacks. Cold wallets never touch any website, and any NFT put up for sale must first be transferred to a Sale wallet before being listed.
Seed Phrases and Ledger Protection
One of the most important steps in Rose’s new security protocol is the recording of seed phrases of all ledgers on steel and storing them at a high-security facility. This will ensure that even if his devices are lost or stolen, he can still access his assets. Additionally, the Cold and Sale wallets will utilize Ledger protection and require a multisig. The Ledger protection and Multisig system will require multiple signatures to move assets, thereby reducing the risk of theft.
To further enhance security, Rose is currently using Wallet Guard and Pocket Universe Chrome extensions. These extensions add an extra layer of protection to his NFT wallets, helping to guard against any unauthorized access. However, Rose notes that these are not security advice but rather his current stack and encourages feedback from the community on any better options.
Kevin Rose’s hack is the latest in a string of high-value exploits targeting well-known figures in the Web3 community. With the NFT market continuing to grow and attract more high-value assets, it’s crucial for NFT holders to take the necessary steps to secure their assets. Rose’s new security protocol serves as a good example of how to approach NFT wallet security, and other NFT holders can use it as a starting point for their own security measures.
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