Flipster deepens security and privacy posture as threat and regulatory pressure intensifies across crypto

• Flipster’s evolving security has drawn attention as the crypto sector continues to be plagued by evolving threats and ever-creative threat actors.
• Flipster has strengthened its information security and privacy governance through a series of independently validated milestones, including ISO certifications and an AAA security rating.
• Flipster’s rigorous approach to risk management and data protection reinforces user confidence in a trust-sensitive environment.

Months after Flipster’s Chief Information Security Officer (CISO), Justin Hong, shared the exchange’s security philosophy in an exclusive interview with Cryptopolitan, the platform has continued to build on that foundation. 

Flipster has focused on consolidating its infrastructure, governance, and monitoring capabilities to support real-time threat response and long-term operational resilience. The result is a measurable progression in how Flipster manages security, privacy, and risk at scale.

Building on a security-first foundation

In the previous interview, Justin outlined Flipster’s approach to safeguarding user assets through a combination of industry-standard controls, certifications, and proactive defense strategies. At the time, the exchange had secured ISO/IEC 27001 certification, validating its information security management system and its ability to assess risk, respond to incidents, and meet regulatory expectations. 

Since then, Flipster has expanded that foundation by achieving ISO/IEC 27701:2019 certification. The standard extends ISO 27001 into a formal Privacy Information Management System (PIMS), establishing clear standards for how personal data is collected, processed, stored, and protected across systems, teams, and partners, with accountability embedded throughout.

For Flipster, the certification reflects a deliberate move to apply the same rigor to privacy governance as it does to security, uptime, and asset protection. It formalizes accountability for data handling across the organization at a time when privacy expectations from both regulators and users are rising globally.

Independent validation across security benchmarks

Alongside its ISO certifications, Flipster has also strengthened its standing in independent security assessments. In mid-2025, CER.live, a leading cybersecurity ranking platform powered by blockchain security firm Hacken, upgraded Flipster’s rating from AA to AAA. 

The AAA rating places Flipster among the top 10 most secure exchanges globally based on CER.live’s evaluation framework, which assesses factors such as server security, user protection mechanisms, penetration testing results, and bug bounty programs. Flipster recorded a 90% overall security score, including perfect marks across multiple technical and operational categories. The feat positions the exchange alongside the likes of Coinbase and Kraken.

CER.live’s methodology is widely referenced in the industry for its focus on observable controls rather than self-reported claims. Flipster’s score reflects sustained investment in infrastructure such as Fireblocks’ multi-party computation (MPC) custody technology, which eliminates single points of failure and strengthens cold wallet management while allowing the exchange to retain full asset custody.

These upgrades build on earlier security features, including passkey authentication, withdrawal loss protection and real-time login alerts. Collectively, they support a zero-trust security model that treats every system interaction as potentially hostile, a posture increasingly adopted by institutions operating in high-risk digital environments. 

Transparency as a security control

Beyond preventative controls, Flipster has also leaned into transparency as part of its security strategy. In August 2025, the exchange completed a proof-of-reserves (PoR) audit with Hacken, confirming that all customer deposits are fully backed. The audit includes independent on-chain verification, allowing the public to validate reserves directly. 

In an environment where confidence has been eroded by opaque balance sheets and post-incident disclosures, such verifiability has become a baseline expectation rather than a differentiator. For Flipster, the audit reinforces its stated commitment to accountability and asset segregation.

Operating amid an evolving threat and regulatory landscape

The security progress comes as the broader crypto sector continues to face persistent and escalating threats. In 2025 alone, hackers reportedly stole more than $3 billion in crypto assets, with centralized exchanges (CEXs) bearing most of the brunt. Nation-state-linked actors, including groups attributed to North Korea such as Lazarus, were tied to several of the largest incidents, including a $1.5 billion breach at Bybit. 

Those threats have not abated entering 2026. If anything, attack methods have grown more targeted and operationally complex, placing sustained pressure on exchange defenses.

At the same time, the regulatory environment has shifted from consultation to enforcement and supervision. According to a report by PwC, many jurisdictions are now actively implementing crypto frameworks rather than merely proposing them. The US has advanced legislative efforts, such as the GENIUS Act, and is working on doing the same for the CLARITY Act, while the SEC has transitioned from enforcement-heavy moves to guidance for tokenized assets. In Europe, MiCAR and DORA are moving into implementation, with an emphasis on custody segregation, operational resilience, and auditability.

Other jurisdictions, responding to the use of crypto in sanctions evasion, have tightened compliance and monitoring requirements. Collectively, these developments have raised the bar for governance, transparency, and technical resilience across the industry.

Flipster’s recent upgrades align closely with these evolving demands. Its ISO certifications, AAA security rating, real-time monitoring, and asset segregation controls directly address regulatory expectations around data protection, custody integrity, and breach prevention. The exchange’s operating model combines centralized execution efficiency with transparency mechanisms inspired by on-chain verification, reflecting a hybrid approach increasingly favored by regulators and institutional users alike.

Security as a deliberate strategic focus

Flipster’s year-end 2025 recap underscores how central security has become to its operating priorities. The exchange highlighted its AAA rating, expanded ISO certifications, and infrastructure hardening as core achievements, alongside growth metrics.

Rather than emphasizing rapid feature expansion, Flipster’s focus shifted toward reliability, resilience, and scaled protection. The approach appears intentional: strengthening defenses, governance, and verification before layering on additional complexity.

That strategy is reflected in the exchange’s track record. To date, Flipster has avoided major breaches, hacks, or security downgrades. Its progress is measurable through independent ratings, formal certifications, and publicly verifiable audits, providing concrete reference points in an industry where trust is often tested only after failure.

As threat actors grow more capable and regulatory scrutiny deepens, exchanges are increasingly judged not by claims, but by controls. Flipster’s recent milestones suggest a platform positioning itself for that reality, prioritizing security and privacy as foundational requirements rather than reactive add-ons.