Server Breach

Definition ∞ A server breach occurs when unauthorized individuals gain access to a computer server, compromising its data, systems, or network. In the context of digital assets, this typically involves an attack on a centralized exchange, a custodial service, or a blockchain project’s infrastructure. Such breaches can lead to the theft of sensitive information or digital funds.
Context ∞ Server breaches are a recurring and alarming headline in crypto news, often resulting in significant financial losses and a loss of user confidence in affected platforms. These incidents underscore the critical need for robust cybersecurity practices, including strong encryption, regular security audits, and multi-layered defenses. The digital asset industry continually strives to enhance server security to protect user holdings and maintain system integrity.