A blockchain-based gaming platform has a hot wallet that holds a significant amount of cryptocurrency. They have experienced a phishing attack that compromised one of the wallet's private keys. What should be the FIRST step in their incident response plan?

Contact law enforcement to report the phishing attack.

Analyze the phishing email to understand the attack vector.

Notify all users that their funds may be at risk.

Move the remaining funds from the hot wallet to a cold wallet using a new, secure key.

A blockchain-based remittance service is expanding to a new country. The local regulator requires that all transactions above a threshold be reported to the financial intelligence unit. The service currently does not collect any customer identification data. What is the first step the company must take to comply?

Hire a compliance officer to review the regulatory requirements.

Implement a KYC/AML program that collects customer identification and transaction monitoring data.

Encrypt all transaction data on the blockchain to hide it from regulators.

Set up a local office in the new country to handle regulatory inquiries.

EC-CouncilBlockchain Fintech Certification

Domain 8Objective 5

Risk Management in Blockchain Finance BFC Practice Questions (Page 8)

Part of the Governance, Compliance, and Risk Management domain, which makes up ~12% of our current practice bank.

50questions here

10free pages

7concepts

Questions 36–40

36application · medium
A blockchain-based gaming platform has a hot wallet that holds a significant amount of cryptocurrency. They have experienced a phishing attack that compromised one of the wallet's private keys. What should be the FIRST step in their incident response plan?
Select an answer first
37foundation · easy
Which mechanism is commonly used for continuous monitoring of blockchain transactions to detect suspicious activity in real time?
Select an answer first
38foundation · easy
Which risk mitigation strategy for blockchain finance requires multiple private keys to authorize a transaction, thereby reducing the risk of a single point of failure?
Select an answer first
39application · medium
A blockchain-based remittance service is expanding to a new country. The local regulator requires that all transactions above a threshold be reported to the financial intelligence unit. The service currently does not collect any customer identification data. What is the first step the company must take to comply?
Select an answer first
40foundation · easy
Which risk mitigation strategy involves transferring the financial impact of a blockchain-related loss to a third party?
Select an answer first

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Risk Management in Blockchain Finance BFC Practice Questions (Page 8)

Questions 36–40

A blockchain-based gaming platform has a hot wallet that holds a significant amount of cryptocurrency. They have experienced a phishing attack that compromised one of the wallet's private keys. What should be the FIRST step in their incident response plan?

Which mechanism is commonly used for continuous monitoring of blockchain transactions to detect suspicious activity in real time?

Which risk mitigation strategy for blockchain finance requires multiple private keys to authorize a transaction, thereby reducing the risk of a single point of failure?

Which risk mitigation strategy involves transferring the financial impact of a blockchain-related loss to a third party?

Keep studying — Governance, Compliance, and Risk Management