U.S.-based BitGo has announced a major overhaul to its wallet security infrastructure on Thursday. The platform has introduced a multi-layered defense system in an attempt to combat the rising wave of sophisticated cyberattacks. Addressing the risks of API intercept attacks, BitGo has introduced real-time API attestations. This will essentially prevent hackers from altering transaction destinations into their favoured wallets.
In an announcement shared with The Coin Headlines on Thursday, BitGo said that the risks of crypto wallet hacks have risen in the Middle East region amid the ongoing Hormuz conflict.
“As digital asset attack vectors become more sophisticated—ranging from simple wallet breaches to convincing deepfakes, social engineering, and API spoofing—cold storage is no longer an inadequate defense,” said the 2013-founded crypto infra and wallet provider in its announcement.
As part of the security updates, the platform has revamped its BitGo Verify app with tolls like upgraded biometrics to ensure that transaction approvals have originated from known and secure devices.
BitGo said “address poisoning” has become a common type of exploit that crypto hackers have been using to steal funds from protocols and wallets. To help its institutional clients against these risks, BitGo has rolled out policy recommendations, duplication, and webhook integrations to its Policy Engine.
“The platform will flag suspicious destinations at the moment of execution so operators can intervene before funds move before execution,” the platform noted.
BitGo, after clocking a high-stakes $2.1 billion debut on the NYSE earlier in January, the company secured the National Trust Bank Charter in the U.S.
The platform’s upgrade to its security provisions seems like a natural action especially because it reportedly secures eight percent of all on-chain BTC transactions.
“By validating transactions across intent, device, identity, behavior, and policy layers, BitGo addresses a new class of risks facing institutions, where attacks increasingly target the gaps between systems in addition to the systems themselves,” the announcement added.
BitGo offers both, hot as well as cold wallet solutions. In December 2025, the platform had recommended offline cold wallets as the safest option to store crypto funds.
The Hormuz connection
Amid simmering tensions between Iran, Israel, and the U.S., the Strait of Hormuz has found itself under a “dual blockade” situation with Iran restricting commercial traffic and the the U.S. Navy blockades Iranian ports.
Shipping in the region has collapsed by 90 percent, leaving hundreds of vessels stranded and global energy prices spiking as the crisis enters its third month.
The crypto activity in the region surrounding the Strait of Hormuz including Iran and the UAE has also risen. Earlier in April, Iranian authorities said they would charge a toll in BTC from oil ships seeking passage through the Hormuz passage. Given that BitGo wires a large chunk of BTC payments, it felt the need to amp up its security measures as an urgent necessity.
