Thursday 18 October 2018 9:35 am

G4S muscles into cryptocurrency security with offline storage facility


G4S has muscled its way into cryptocurrency storage launching a new security service to protect assets from criminals and hackers.

The security firm has launched the service after estimates showed more than $1.2bn of cryptocurrency has been stolen since the beginning of 2017.

More than $500m was taken earlier this year from Japanese exchange Coincheck.

Read more: The emergence of micropayments and impact of cryptocurrencies

The FTSE 250 company, which runs prisons and detention centres as well as storing cash, has developed an offline storage facility to secure cryptocurrency in high security vaults.

“We not only take the assets offline, but break them up into fragments that are independently without value and store them in high security vaults, out of reach of cyber criminals and armed robbers alike,” senior risk analyst Dominic Maciver said.

Only when all the stored fragments are brought together can the value of the cryptocurrency be accessed.

Maciver said cryptocurrency exchanges had enquired about the security solutions for crypto-assets on account of G4S's cash solutions arm.

Read more: Crypto A.M. shines its spotlight on Sensify

Robberies and kidnappings in recent years amid the astronomical rise in value of Bitcoin and other currency have led to security and regulation concerns in the industry.

G4S also said it would be advising customers on threat identification and risk mitigation.