You Won’t Believe What This Ex-Military CEO Does to Hackers in Web3 – The Shocking Truth Revealed!

Groom Lake Founder and CEO FDR, known in crypto circles as “FDR”, has been called the “scariest man on-chain”, and for sophisticated hackers and cyber-crime groups going after high-profile protocols and VIPs, it’s probably not too far from the truth.

In essence, FDR’s company stands as the ” Delta Force” of crypto security – if you attempt a hack and your target summons their aid, know that they will relentlessly pursue you. Swiftly and decisively. With a team of highly-trained former US military and intelligence personnel, specialized in offensive security, forensic investigative techniques, and capabilities in psychological warfare deployable worldwide within 24 hours, one minor mistake could be enough.

FDR excels at placing hackers, whether they work alone or are backed by a nation, under immediate stress from the start. By utilizing top-tier knowledge in cybersecurity and unyielding tenacity, it’s likely that a group of stern law enforcement agents will forcefully enter your premises, overpowering you, seizing your unlawful earnings, before you even have a chance to withdraw them.

What’s his secret? We had a chat with him directly and discovered the reason why, as a hacker, you’d rather avoid having him hot on your heels…

1: Groom Lake describes itself as the “private military corporation” for Web3, which suggests that your company operates in a way that’s comparable to the military. But why do Web3 companies/protocols/investors need military-grade security?

At Groom Lake, they serve both offensive and defensive roles, taking action to stop or counteract threats such as cyberattacks and hacks, often in a decisive manner. Typically, these attacks originate from within an organization (insider threats) or from state-sponsored actors. The Lazarus Group is one example of the latter category, representing a significant threat.

In our recent operation, dubbed Operation Ural Spectre, we exposed a sophisticated cyber threat group (APT), known as Lazarus, operating in the Russian Far East. By employing digital forensics and open-source intelligence, we were able to uncover their methods and launch an effective counterattack. This group took advantage of vulnerabilities in VPN configurations and used wallets under U.S. economic sanctions (OFAC) to wash assets. This discovery underscores the primary motivation behind North Korean state actors carrying out cryptocurrency hacks despite increasing sanctions and their limited access to the global financial system.

Historically, it’s clear that these attacks aren’t one-off incidents but rather part of an escalating pattern where state-level entities are targeting protocols, exchanges, and wealthy individuals. As the market surges, the financial motivations for these groups intensify, making their targets more valuable. Interestingly, there seems to be a strong link in data between highly volatile, bustling markets and the amount of assets that fall prey to nation-state threats.

As an analyst, I’m expressing that working at Groom Lake implies a commitment to matching or surpassing military-grade security standards. This is because such a setting demands capabilities in cutting-edge intelligence, swift reaction times, and proactive defense strategies – tactics we’ve honed during our tenures at the NSA or Army Cyber Command. These skills have been instrumental in nullifying entities like Lazarus.

2: How likely is it that one of your average customers is going to face some kind of critical security threat?

It’s quite probable due to this reason: The emphasis on security in Web3 has traditionally been solely on smart contract risks. The solutions have been static, one-time products like audits. This often leads people to abandon hope when these audits don’t detect crucial vulnerabilities, viewing further recovery and investigation as a task for slow-moving bureaucrats in law enforcement.

As a crypto investor, I’ve come to realize that our digital assets are not immune to various threats. These risks span across multiple fronts such as phishing attempts, SIM swapping, insider dangers, and even the exploitation of conventional smart contracts. To ensure the safety of my investments, it’s crucial for protocols to adopt a comprehensive approach. This means integrating both traditional security measures and robust smart contract security practices, an area where Groom Lake has made significant strides with innovative products like Drosera.

3: Your presentation repeatedly emphasizes the need for a plan of action and rapid speed when responding to security incidents, and it claims you can have an operative on the ground, anywhere in the world in 48 hours or less. Why is this so important, and what kind of impact does this speedy response have on the success of your investigations, compared to just rolling up a few days later?

In our usual routine, we operate within a 24-hour timeframe, but when it comes to incident response, 48 hours can feel like an eternity. Time is crucial in this context because the longer a victim waits to act, the higher the risk of irreversible financial loss or collateral damage. This principle is akin to the TV show “The First 48 Hours”, where detectives and law enforcement personnel work tirelessly to solve murders within those initial hours. The freshness of the crime scene, the increased likelihood of errors by the perpetrator, and the psychological factors such as shock, awe, and the silent pressure of being pursued are all essential elements in winning this game.

In London, during Operation Hidden Forge, we showcased our capabilities in collaboration with British officials. Our team spearheaded the investigation to track funds, identify the culprit, and monitor his activities until law enforcement arrived. If it weren’t for the quick action taken by the client or Groom Lake, the outcome might have been different, and it’s hard to say where the suspect would have fled.

4: In your Operation Wavefront case study, it says you used OSINT to track down a developer who had freshly minted millions of new tokens and sold them on exchanges. What kind of OSINT did you rely on? What steps were taken to identify this person, how many people were involved in this process and how long did it take?

At Groom Lake, they don’t openly share their methods (Tactics, Techniques, and Procedures), but for this particular case, we used open-source information (OSINT) along with blockchain investigation techniques to track down the developer. An incident involving a GitHub API leak exposed the email of the suspect, which was then associated with their Ethereum wallet. This trail led us to public business reviews that revealed the identity of the perpetrator, which we cross-checked using LinkedIn and other social media platforms. By analyzing on-chain transactions, we traced the stolen tokens as they moved across exchanges and digital wallets, creating a comprehensive profile. Our team quickly reached critical conclusions once the operation was initiated, and action followed promptly thereafter.

Typically, for these tasks, it’s managed at the strategic stage by staff from our Intelligence Unit during Phase 1. As we get ready to execute the operation, we dispatch a primary agent to the relevant region. Upon arrival, this agent liaises with secondary assets based in Groom Lake that are already present in the host country.

5: Besides catching the culprit, did you offer the project in the above case any assistance in terms of mitigating the impact of what happened (exchanges being flooded with tokens, sending the price crashing)? If so, what did you do?

In comparable situations, Groom Lake often collaborates with exchanges to halt transactions, retrieve funds, and stop additional token sales. They may also assess the effects on liquidity and guide projects in formulating recovery plans to stabilize token prices. Essentially, they serve as a swift response team or “shock and awe” unit, rather than primarily functioning as lawyers or negotiators.

6: Your case studies focus on how you have assisted protocols, but you also offer services to VIPs and whales. How different is the nature of the threats faced by VIPs and whales, and how do you protect them against these threats?

As a researcher focused on security matters, I’m particularly concerned about the expansive risk landscape for VIPs and whales. The main perils they encounter are rooted in conventional security domains, such as targeted phishing, SIM swaps, and social engineering attacks. Fortunately, our expertise at Groom Lake is well-suited to address these challenges, but we’ve gone a step further by creating unique tools like REAPER – a real-time custom threat intelligence feed for our clients. This innovative technology allows us to stay vigilant and protect our clients from these imminent risks proactively.

7: Have you helped any whales/VIPs who were hacked before? If so, can you tell us about it?

Indeed, while the specifics are kept under wraps, it’s known that Groom Lake has effectively retrieved valuable assets for distinguished clients by employing rapid asset tracking, partnership with exchanges, and utilizing extensive global intelligence resources. However, sharing details of individual cases is contingent upon the approval of each client.

I can make it clear to you that our work revolves around information. In various situations, we have assisted both whales (large investors) and VIPs in numerous ways. Sometimes this involves launching an investigation, compiling the results into a report, and handing it over to the authorities. This leads them to track down the exchanges where funds are being transferred. In exceptional cases, we coordinate with law enforcement agencies to carry out joint operations, which have resulted in arrests.

These operations demand unique strategies, encompassing tactics such as psychological warfare and off-the-record intelligence gathering, to amass all available data about the subject. We’ve also assisted high-profile individuals who have been under attack or threat from rivals – by uncovering sensitive information about the targets and guiding clients on how to respond effectively with this newly acquired knowledge.

In most instances, these situations lead us to continue providing our preventative services, significantly reducing the likelihood of a recurrence.

8: What are the most beneficial security best practices that every protocol and whale should employ, and which, if any, are not really that useful?

It’s crucial to incorporate security measures from the start as you progress with development projects. Platforms such as Twitter, Discord, GitHub, Google Workspace, and others that carry high-risk levels are frequently overlooked by teams because they prioritize development over securing existing systems. Essential safety measures include setting up multi-factor authentication (MFA) using authenticator apps rather than SMS-based MFA due to the risk of SIM swapping, carefully checking links before clicking on them, performing routine access audits, and enforcing the principle of least privilege (POLP) to minimize the occurrence of “shadow IT” – users who abuse excessive permissions.

For whales, the threat landscape varies significantly. Unlike typical enterprises, they don’t have complex systems as their main vulnerability; rather, it’s themselves. Prominent individuals are often targeted by vishing (voice phishing) and conventional phishing schemes. To minimize these threats, always confirm the identity of anyone reaching out to you, as phone numbers can be falsified. If uncertain, disconnect and dial them back directly, as initiating calls is harder to fake unless the number has been SIM-swapped. Enhancing security with your mobile carrier can lessen SIM swap risks even further. Furthermore, it’s wise for whales to protect their digital possessions by employing MFA (Multi-Factor Authentication) through authenticator apps instead of SMS verification methods.

As an analyst, I cannot emphasize enough the importance of sticking to the fundamentals, and should additional reinforcement be required, Groom Lake stands ready to provide assistance in both proactive measures and emergency response scenarios.

9: Is there any kind of scenario where Groom Lake might struggle to investigate/catch the bad guys? If so, what are you trying to do to address this deficiency?

In cases where the initial attack has long since passed, recovery becomes more challenging due to factors such as spent funds, well-concealed tracks by the perpetrator, or highly anonymous attacks – especially those suspected of being state-sponsored. However, Groom Lake works closely with law enforcement, organizations like INTERPOL, and employs unique tools to help overcome these obstacles.

At Groom Lake, we apply analytical standards and methods similar to those used within the U.S. intelligence community, specifically referencing ICD 203. This structure was created as a response to the intelligence errors related to WMD evaluations during the 2003 Iraq War, ensuring our assessments and real-time reports (on-the-spot reports) achieve the utmost level of credibility.

As a member of our dedicated research squad, I’m proud to share that we’ve been fortunate to have individuals on our team who’ve undergone training from the National Security Agency. This unique background equips them with an exceptional methodology they apply diligently to their work. The result is a level of precision and accountability that sets us apart, surpassing what’s commonly found in many civilian organizations.

Following stringent military-level specifications, we provide security solutions designed to tackle the intricate and sophisticated challenges that Web3 environments encounter.

Deck:https://bit.ly/groomlakeintro

2025-01-17 14:56