Start with lesson 14 lessons · about 2.1 hours · free account to read in full
Lesson 1 opens on
Prime Trust, 2023
Prime Trust was a Nevada trust company that held crypto assets for other businesses and their customers.9 million dollars on hand. The chain of failure was operational, not a hack: around December 2021 the company found it could not access a set of legacy wallets, and per the petition, from December 2021 to March 2022 it bought crypto using customer money from its omnibus accounts to satisfy withdrawals from the inaccessible wallets, so a controls failure became a solvency hole.
The lessons
- G402-01Segregation of dutiesState the segregation-of-duties principle: no one person initiates, approves, and reconciles the same movementabout 31 min · opens on Prime Trust, 2023
- G402-02The hot-cold boundary at institutional scaleDefine the hot-cold boundary and why only an operational minimum should sit in a hot walletabout 31 min · opens on Coincheck, January 2018
- G402-03Reconciliation, and the shortfall caught too lateDefine reconciliation as the ongoing comparison of what an institution holds against what it owesabout 31 min · opens on Cred Inc, 2020
- G402-04Change management and the four-eyes ruleDefine change management as controlling how any change to a production system goes liveabout 32 min · opens on Ledger Connect Kit supply-chain compromise, December 2023