Why Every Organization Needs an Incident Response Plan

Imagine waking up to discover that your platform’s wallet service has been drained overnight; millions gone, users panicking, reputation in ruins, or a high-profile scenario, where a DeFi protocol notices suspicious outflows at 2 AM. By the time on‑call engineers wake up, the funds are gone. The clock is ticking, and any delay in identifying, tracing, and freezing assets magnifies losses. In Web3, where there’s no “undo” button, a security breach can be disastrous. In traditional finance, breaches are handled by centralized teams with clear playbooks. In Web3, a single exploit, whether a misconfigured multisig or a hidden logic flaw can drain millions in seconds. Without a robust incident response strategy, protocols risk irreversible damage and loss of user trust. That’s why having a solid incident response and recovery plan isn’t optional; it’s your safety net.

Key Takeaways:

• Incident response isn’t just technical, it’s organizational.

• Early detection and quick containment limit damage.

• Recovery focuses on fixing the root cause and rebuilding trust.

• Having a solid Incident Response plan helps in building stronger, more resilient systems.

Security incidents will happen, but they don’t have to define you. With ZeroShadow's proactive incident response and recovery plan, you can confront breaches directly, safeguard your users, and emerge stronger each time.

Sequel to my research on finding the industry's leading Incident Response and Recovery solution, I found Zero Shadow - Web3's Virtual Security Operations Center

ZeroShadow is the leading managed‑security and incident‑response firm built exclusively for blockchain. Founded by ex‑Chainalysis investigators, ZeroShadow operates as a 24/7 virtual SOC, delivering forensic expertise and rapid recovery across on‑chain and off‑chain channels.

The team operates with a TORCH framework through which they provide 24/7 security monitoring for you team.

The TORCH Framework

Prepare: Hack trends, operational security guidelines, crisis management plans.

Prevent: Threat monitoring, blockchain surveillance, DNS and phishing protection.

Respond: Real-time anomaly notification, threat analysis & briefings.

Recover: Debriefs post-incident, asset protection & recovery measures.

What Sets ZeroShadow Apart

• Deep Forensic Roots: Every team member hails from Chainalysis or leading cybercrime units. Their pedigree of experience means faster root‑cause analysis and bullet‑proof evidence chains for law enforcement.

• Always‑On Coverage: With analysts working round the clock across different time zones, there’s never a blind spot. ZeroShadow’s SOC operates 24/7.

• Holistic Defense: They blend on‑chain analytics, device fingerprinting, and DPRK wallet tracking, neutralizing threats before they spread.

• Proven Track Record: Over 120 clients, including protocols like 1inch, ENS, and Phantom, trust ZeroShadow with incident drills and real‑world hacks such as the Bybit and WazirX breaches.

• Seamless Integration: ZeroShadow works alongside in‑house teams, regulated custodians, and DeFi aggregators, fitting into existing workflows without friction.

A Typical Incident Workflow

1. Alert & Triage: A suspicious transaction triggers a Hypernative alert, and ZeroShadow analysts verify the anomaly.

2. Contain & Freeze: Within minutes, compliance desks at major exchanges receive freeze requests to halt asset outflows.

3. Trace & Report: Detailed on‑chain tracing maps the path of illicit funds; findings are delivered in a clear, executive‑ready report.

4. Recovery & Follow‑Up: Coordinating with law enforcement and legal teams, ZeroShadow spearheads the recovery process, reclaiming assets and tightening controls.

Why Every Protocol Needs a Virtual SOC

• Speed Saves Funds: In DeFi, every minute counts. ZeroShadow’s rapid containment can be the difference between a recovered wallet and a $10 M void.

• Expertise on Demand: Not every project can staff in‑house forensics; ZeroShadow delivers specialists at a predictable subscription cost.

• Trust & Transparency: Detailed incident reports and playbooks build stakeholder confidence, demonstrating proactive security governance.

Conclusion: Fortify Your Future

Web3’s promise hinges on trust. When incidents occur, which they most likely will, having ZeroShadow at your side means expert response, faster recovery, and restored confidence. In a landscape where threats evolve daily, choose a partner that anticipates, contains, and conquers incidents in real time.

Ready to light your TORCH? Reach out to ZeroShadow and ensure your protocol stays secure, resilient, and trusted.