The risk of hacking of exchange platforms and DeFi protocols is no longer a “residual operational risk”: it has become a systematic pricing factor for any crypto exposure, whether on-balance-sheet, collateral-based, or as a market maker. The cumulative losses from the 24 major incidents recorded between June 2011 and October 2026 amount to approximately 10.945 billion USD, including 6.3 billion USD for the single Binance episode of October 2026. The extreme concentration of the distribution tail, the Bybit episode of February 2025 alone accounted for 44% of the losses in 2025 and 32% of the cumulative losses for 2024–2025, invalidates any classical mean-variance approach.
The problem that investors, treasurers and regulators pay us to solve is threefold:
- Quantify ex ante the probability and severity of an “extreme loss” event on a given platform counterparty, taking into account the dependence between platforms (liquidity contagion, correlation of state attack vectors).
- Properly price the cost of this risk in yield strategies (yield farming, market making, collateral posting), that is, turn a qualitative “safety” judgment into a quantified cyber risk spread, comparable to a CDS spread.
- Reduce the reaction time between detection of an on-chain anomaly and deactivation of an exposure, which is currently measured in hours, while sophisticated attacks execute in less than 20 minutes across 10 blockchains simultaneously.
The service we offer is deliberately simple in its interface | a daily counterparty cyber risk index (Crypto-Counterparty Cyber Risk Index, CCCRI), broken down by platform and by aggregated portfolio | but it relies on a heavy quantitative architecture. It is distributed through a direct institutional channel (API, terminal, regulatory reports) to risk desks, crypto treasuries and compliance functions, with outreach to regulators via prudential stress tests.
