Intent-Bound Authorization Protocol Limits Exposure in Compromised Cryptocurrency Systems
Original title: Intent-Bound Authorization for Cryptocurrency Withdrawals Under Backend Compromise
IWAP enforces customer intent and spending reservations to prevent unauthorized withdrawals even when backend signatures are controlled.
Binance's October 2026 attack raises questions about custody when attackers control permitted services. The proposed Intent-Bound Withdrawal Authorization Protocol (IWAP) performs independent checks on customer intent, transaction effects, workload evidence and single-use reservations before signing. Administrative actions use a separate path. A Python reference monitor rejects invalid requests while limiting exposure under compromise.
- Protocol includes intent checks and committed spending reservations
- Rejects 1,200 negative requests and accepts 3,000 valid synthetic requests
- Preserves 100-unit budget under 64 concurrent attempts
- Conditional arguments for replay resistance and fixed-epoch exposure bound
From the original article
1 min read at arxiv.orgBinance's preliminary account of its October 2026 attack raises a custody question that key protection alone cannot answer: how can a provider prevent unauthorized withdrawals when an attacker controls a service permitted to request signatures? We propose the Intent-Bound Withdrawal Authorization Protocol (IWAP).
By Toqeer Ali Syed · arxiv.org
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