CCE Security & Risk Management 4

Question 1

What is the main purpose of a bug bounty program in the cryptocurrency ecosystem?

Accepted Answer

Incentivize ethical hackers to find and report vulnerabilities

Answer

Bug bounty programs pay security researchers to responsibly disclose vulnerabilities before malicious actors exploit them.

Question 2

Which risk specifically affects DeFi protocols due to their reliance on external price feeds?

Accepted Answer

Oracle manipulation risk

Answer

Oracle manipulation risk arises when attackers manipulate the price feeds that DeFi protocols rely on to value assets, enabling exploits like flash loan attacks.

Question 3

What is 'key ceremony' in the context of cryptocurrency infrastructure?

Accepted Answer

A formal, witnessed process for generating and distributing cryptographic keys securely

Answer

A key ceremony is a formal, audited procedure where cryptographic keys are generated in a secure, multi-party environment to ensure no single party controls them.

Question 4

What does 'operational security' (OPSEC) mean for a cryptocurrency holder?

Accepted Answer

Protecting sensitive information and behaviors that could reveal crypto holdings to adversaries

Answer

OPSEC for crypto holders involves minimizing information leakage about wallet addresses, holdings, and security practices to reduce targeting risk.

Question 5

Which regulatory framework most commonly requires cryptocurrency exchanges to implement AML programs in the United States?

Accepted Answer

Bank Secrecy Act (BSA)

Answer

The Bank Secrecy Act requires US money services businesses, including many crypto exchanges, to implement AML/KYC programs and file SARs.

(CCE) Certified Cryptocurrency Expert Practice Test

(CCE) Certified Cryptocurrency Expert Practice Test

CCE Security & Risk Management 4