Security Audit: Technical Deep Dive into CoinExchange.Cash
Technical deep dive into CoinExchange.Cash security architecture. Escrow contracts, HSM key management, smart contract auditing, and operational security.
CoinExchange.Cash security is built on multiple layers: 2-of-3 multisig escrow contracts, HSM-encrypted arbitrator keys, non-custodial architecture, and operational security best practices. The platform never has unilateral control of user funds.
Security Architecture Overview
CoinExchange.Cash is built with a security-first architecture. Every design decision prioritizes the protection of user funds over convenience.
Layer 1: Non-Custodial Design
The most important security feature is the simplest: we never hold your funds.
- No deposit addresses: Your crypto stays in your wallet until you trade
- Escrow-only custody: During a trade, funds are in a multisig contract — not a platform wallet
- Direct settlement: After a trade, crypto goes directly to the buyer's wallet
- No hot wallet risk: There is no platform hot wallet to hack
Layer 2: Multisig Escrow
Every trade is protected by 2-of-3 multisig:
How Keys Are Generated
- Buyer key: Generated client-side in the buyer's browser/wallet
- Seller key: Generated client-side in the seller's browser/wallet
- Arbitrator key: Stored in the platform's encrypted HSM
Smart Contract Security
- EVM escrow contracts are deployed per-trade (not a shared pool)
- Bitcoin escrow uses standard P2SH scripts (battle-tested since 2012)
- Each escrow has a timeout for automatic fund return if the trade stalls
What This Means
- No single party (including CoinExchange.Cash) can steal escrowed funds
- A compromised platform database cannot access funds
- A compromised server cannot sign transactions without user co-signatures
Layer 3: HSM Key Management
The platform arbitrator key is secured using a software HSM:
- Keys are encrypted with AES-256 at rest
- Decryption occurs only during dispute resolution
- Every key usage is audit-logged with timestamp and reason
- Keys are never exposed in plain text, even in memory
Layer 4: Application Security
Authentication
- JWT tokens with short expiration
- Two-factor authentication support
- Rate limiting on all endpoints
- Brute force protection on login attempts
Data Protection
- Passwords hashed with bcrypt
- KYC documents encrypted at rest (for users who opt in to verification)
- PII minimized — most users have zero personal data stored
Infrastructure
- Hosted on Railway with isolated containers
- PostgreSQL with encrypted connections
- Redis for session management with TTL-based expiry
- Cloudflare for DDoS protection and SSL termination
Layer 5: Operational Security
Access Control
- Role-based access control (User, Moderator, Admin, Super Admin)
- All admin actions are audit logged
- Principle of least privilege for all system accounts
Monitoring
- Real-time alerting on suspicious activity
- Automated LTV monitoring for lending positions
- Escrow timeout monitoring for stalled trades
Incident Response
- Documented incident response procedures
- Ability to pause trading if a vulnerability is discovered
- Communication channels for security disclosures
What We Do NOT Have Access To
- Your wallet private keys
- Your trade passwords or 2FA secrets
- Unilateral control of escrowed funds
- The ability to reverse completed trades
- Your browsing or trading history on other platforms
Bug Bounty
If you discover a security vulnerability in CoinExchange.Cash, please report it responsibly. We take all security reports seriously and will work with you to address any issues.
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