Why Hackers Fear Groom Lake’s FDR: The Military-Grade Security Revolution in Web3!

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 firm operates much like an elite unit such as the Delta Force within the realm of cryptocurrency security. If you attempt a hack and your target seeks FDR’s assistance, be prepared for swift retaliation. This company boasts highly-skilled former US military personnel and intelligence agents who specialize in offensive security, forensic investigation, and techniques that can be employed anywhere on the globe within roughly 24 hours. A single mistake could trigger their response.

FDR excels in creating immediate distress for hackers, whether they’re working alone or with government support. By employing top-tier military strategies and relentless persistence, it’s likely that a formidable law enforcement team will storm your premises, apprehending you, seizing your unlawful assets, even before you have the opportunity to withdraw them from your accounts.

How exactly does he manage this feat? We had a chat with the man directly, and uncovered the reasons why any hacker would prefer not to have him hot on their 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?

As a researcher, I find that Groom Lake serves a dual purpose: it’s both proactive and reactive in addressing cyber threats and hacks. From my perspective, potential culprits behind these incidents can be categorized into two main groups – insider threats or state-level actors. The Lazarus Group, for instance, represents the latter category, posing a significant threat that we need to monitor closely.

In our recent operation, codenamed Operation Ural Spectre, we unearthed a sophisticated cyber threat (APT) orchestrated by the Lazarus group based in the Russian Far East. We employed digital forensics and open-source intelligence (OSINT) to disclose their strategies, enabling us to execute an effective counterattack.

The adversaries took advantage of VPN configuration errors and laundered assets through wallets subject to OFAC sanctions. This demonstrates the main motivation behind North Korean state actors persistently carrying out crypto heists despite escalating sanctions and restrictions on accessing the global banking system.

Historically, it’s evident that these attacks aren’t standalone incidents but rather part of an escalating pattern where state-level entities are targeting protocols, exchanges, and wealthy individuals. As the market experiences a bull run, the financial motivations for these groups amplify, making their targets more valuable. Interestingly, there seems to be a strong relationship in data between highly volatile, bustling markets and the resources exploited by nation-state threats.

When Groom Lake ensures high-level military protection, it implies that to combat such threats effectively, you need to match or surpass these capabilities in terms of technology, speed, and strategic defense maneuvers. Our experience at the NSA and Army Cyber Command has shown us how to counteract entities similar to Lazarus using sophisticated intelligence, swift action, and proactive defensive strategies.

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

As a researcher delving into Web3 security, I find it increasingly probable that we’ve been primarily addressing smart contract risks, with our solutions being static audits – a one-time, point-in-time approach. This strategy, unfortunately, often leads individuals to abandon hope when these audits miss critical vulnerabilities, viewing further recovery and investigation as a task for bureaucrats in law enforcement, who are typically slow-moving.

In essence, customers encounter dangers from various perspectives, such as phishing, SIM swaps, insider threats, and typical smart contract vulnerabilities. Therefore, it’s crucial for protocols to take into account both ends of the spectrum – traditional security methodologies and smart contract security. Groom Lake has been pioneering this approach with innovations 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?

As a crypto investor, I understand the urgency of swift action in incident response. Typically, we operate within a 24-hour timeframe, but 48 hours can feel like an eternity. The longer one waits to act, the higher the risk of permanent fund loss or collateral damage. It’s much like the TV show “The First 48,” where detectives and law enforcement professionals rush to achieve crucial milestones within the first 48 hours of a murder. The freshness of the incident, the increased likelihood of mistakes by the perpetrator, and the relentless psychological pressure of being pursued are all vital elements in winning this game. In our world of cryptocurrency, these principles hold true as well – speed, precision, and resilience are key to success.

In London, during Operation Hidden Forge, we showcased our capabilities alongside British authorities. Our team spearheaded the investigation to track down funds, identify the culprit, and monitor his activities until law enforcement intervened. If quick action hadn’t been taken by the client, or Groom Lake, it’s uncertain what might have transpired, or where the offender could have fled to.

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 our investigation, we blended open-source data gathering (OSINT) with blockchain analysis to pinpoint the developer. A GitHub API leak exposed the culprit’s email, which was traced back to the main suspect’s Ethereum wallet. This email matched up with business reviews online, revealing the identity of the perpetrator, a fact we confirmed using LinkedIn and other social media. By examining the blockchain, we tracked the flow of stolen tokens across exchanges and digital wallets, constructing a comprehensive profile. Our team swiftly drew crucial conclusions within hours of the operation’s initiation and promptly moved forward with execution.

Typically, these tasks are managed at a strategic level by personnel from our Intelligence Unit during Phase 1. As we get ready to intervene, we dispatch a principal operative to the specific location. This operative then connects with secondary resources stationed at Groom Lake within the host nation.

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 platforms to halt transactions, recoup funds, and prohibit additional token sales. They may also evaluate liquidity effects and suggest recovery plans for projects to stabilize token prices. Essentially, their role is more about acting swiftly and decisively, serving as a deterrent or first responder, 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?

At Groom Lake, we handle a broad range of potential dangers for VIPs and whales, focusing mainly on traditional security issues like phishing scams, SIM swaps, and social engineering attacks. Our expertise at Groom Lake is particularly useful in this regard, but we’ve also created unique tools such as REAPER – a real-time custom threat intelligence feed – to anticipate these risks and protect our clients effectively.

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

Indeed, I’ve been privy to the operations at Groom Lake, and it’s clear that they excel in asset recovery for distinguished clients. Their strategies encompass swift identification of funds, strategic partnerships with exchanges, and the utilization of worldwide intelligence networks. However, due to client confidentiality agreements, specific cases can only be shared upon explicit consent from the parties involved.

What I can share with you is that our work revolves around information. We’ve aided whales and VIPs in numerous ways. Sometimes, this leads to a simpler resolution where we conduct an investigation, compile the findings into a report for the authorities, and uncover the exchanges where funds are being transferred. In certain exceptional cases, we coordinate efforts with law enforcement agencies, leading to joint operations that ultimately result in arrests.

These operations call for diverse tactics, ranging from psychological strategies to gathering off-platform intelligence to uncover as much information as possible about the subject. We’ve also aided high-profile individuals who have been targeted and threatened by rivals – by unearthing sensitive details about the targets and guiding clients on how to respond effectively with the freshly obtained data.

In most instances, this situation leads us to continue providing our preventative measures to significantly reduce 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 essential to integrate security throughout the development process instead of treating it as an afterthought. Some critical, potentially risky platforms such as Twitter, Discord, GitHub, Google Workspace, and others are frequently overlooked as teams concentrate on progress rather than securing existing systems. Important actions include setting up multi-factor authentication (MFA) via authenticator apps (rather than SMS MFA due to the threat of SIM swapping), carefully checking links before clicking, performing regular access reviews, and adhering to the principle of least privilege (POLP) to prevent “unofficial IT” — users who abuse excessive permissions.

For whales, or high-net-worth individuals, the safety environment varies significantly compared to typical users. Since they don’t rely on enterprise systems, these individuals’ main vulnerable points are themselves. They are frequently targeted by vishing (voice phishing) and traditional phishing scams. To lessen these risks, it’s crucial to confirm the identity of anyone reaching out to you, as phone numbers can be manipulated. If there’s any uncertainty, disconnect the call and contact the person directly using a new call rather than responding to an incoming one, as outgoing calls are harder to fake unless a SIM swap has occurred. Enhancing your mobile carrier’s security measures can help reduce the risk of SIM swapping. Moreover, it’s advisable for whales to protect their digital assets by employing MFA (Multi-Factor Authentication) through authenticator apps rather than using SMS-based methods.

Essential foundations are crucial, and should additional help be necessary, Groom Lake stands ready to offer assistance in both proactive measures and crisis management.

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?

Old crimes, particularly those where the initial phase of the incident has long passed, are often harder to solve, reducing the chances of recovery. Money may have been spent or misdirected, perpetrators might have effectively erased their tracks, or the attacks could be highly anonymous or even state-sponsored. Nevertheless, Groom Lake works closely with law enforcement, international organizations like INTERPOL, and employs specialized tools to help overcome these obstacles.

At Groom Lake, we adhere to the same rigorous analytical methods and practices as the U.S. Intelligence Community, with a focus on ICD 203 protocols. This methodology was designed following the intelligence oversights concerning WMD evaluations during the 2003 Iraq War. Our estimates and brief reports (referred to as spotreps) are thus held to the most stringent level of credibility.

Our team comprises individuals trained by the National Security Agency, who strictly adhere to a highly meticulous approach in their tasks. This dedication results in an exceptional degree of accuracy and responsibility, outshining the standards usually found in non-military organizations.

Following stringent standards akin to those used in the military, we provide security solutions tailored to tackle the intricate and varied risks that Web3 environments encounter.

Deck:https://bit.ly/groomlakeintro

2025-01-17 14:43