Certainly there are protections against this sort of thing, often quite robust protections. For example, fiduciary responsiblity requires dual control to theoretically keep any single employee from engaging in theft. (4/8)

Christopher Allen

@ChristopherA

#SmartCustody Adversary — Institutional Theft

What's INSTITUTIONAL THEFT? Here's the motive: "I pretend to be a good employee, but I’m always waiting for my chance for a great score. I want to sift through the goods entrusted to my company and to take the best for myself." (1/8)

6/11/2020, 1:08:37 PM

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Christopher Allen

@ChristopherA

#SmartCustody is all about figuring out what protects your personal assets best. Many might see an institution as being a strong protector, whether it be an exchange, a bank, or a lawyer. But you have to assess the gains against the dangers for your personal situation. (2/8)

6/11/2020, 1:08:37 PM

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Christopher Allen

@ChristopherA

Our examples of this are mostly theoretical, as companies don't like to publicize actual thefts of this sort. But an engineer could backdoor a system, a bank employee could physically steal something from a safety deposit box. (3/8)

6/11/2020, 1:08:37 PM

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Christopher Allen

@ChristopherA

Certainly there are protections against this sort of thing, often quite robust protections. For example, fiduciary responsiblity requires dual control to theoretically keep any single employee from engaging in theft. (4/8)

6/11/2020, 1:08:38 PM

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Christopher Allen

@ChristopherA

Are the protections of your institution robust enough? That's the question you have to ask, and it's particularly important for cryptocurrency, where actual regulations may not have caught up with the rest of the financial world. (5/8)

6/11/2020, 1:08:38 PM

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Christopher Allen

@ChristopherA

How do you address this adversary? KYI! Know Your Institution. Be aware of its history and (politely) ask questions about how it addresses questions of personal responsibility. Ask your peers — recommendations can be pretty important too. (6/8)

6/11/2020, 1:08:38 PM

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Christopher Allen

@ChristopherA

As always when using these adversaries in a process to improve management of your own risks, the trick is to think of only adversary’s motive at a time. Don't become overwhelmed by addressing all forms of theft at once. (7/8)

6/11/2020, 1:08:39 PM

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Christopher Allen

@ChristopherA

Have your own stories of INTERNAL THEFT impacting digital assets? Your own solutions? Let us know! And please consider supporting #SmartCustody. We're working on V2, with multi-sigs and other expansions: https://smartcustody.btcpay.blockchaincommons.com/ (8/8)

6/11/2020, 1:08:39 PM

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