The Biden administration has pointed out, with concern, the national security implications of cybersecurity and cryptocurrency. It’s only a matter of time before the government starts worrying about their intersection – the security of cryptocurrencies. All of the United States’ international adversaries exploit poor cybersecurity, and many of them monetize their exploits using cryptocurrency. There is nothing more natural for North Korean hackers, Russian organized crime, or partially privatized cyber spies in China and Iran than to steal cryptocurrency to fund their national security operations. They will find an open door; because, as bad as overall cybersecurity is, cryptocurrency security is worse. One need only casually follow cryptocurrency news to be struck by the size and frequency of cryptocurrency security breaches. It is not your imagination, nor the prejudices of the press. Cryptocurrency really has worse security than other digital technologies, and chances are it still does.

Read Stewart Baker explaining why Web3, crypto and blockchain companies are generally very reluctant to update and patch their crypto security in his advisory: Rethinking Responsible Disclosure for Cryptocurrency Security.