What security risks should I be aware of when using blockchain MCP servers?
Category:Blockchain & Web3
Quick Answer
Main risks: private key exposure, AI hallucination executing wrong transactions, slippage/MEV exploitation, supply chain attacks from malicious servers, and prompt injection triggering unauthorized transactions. Mitigate with non-custodial architecture, value limits, and verified open-source servers.
Detailed Answer
Risk Assessment Matrix
| Risk | Severity | Likelihood | Impact |
|---|---|---|---|
| Private key exposure | Critical | Medium | Full wallet drain |
| Agent hallucination | High | Medium | Wrong transaction executed |
| Slippage / MEV | Medium | High | Financial loss per trade |
| Supply chain attack | Critical | Low | Wallet drain via malicious server |
| Prompt injection | High | Low-Medium | Unauthorized transactions |
Detailed Risks
- Private key exposure — if configured with a key, any host compromise gives attackers full wallet access
- Agent hallucination — AI might misinterpret a request (wrong token, wrong amount, wrong chain)
- Slippage and MEV — automated trades without proper slippage protection exploited by MEV bots
- Supply chain attacks — malicious MCP servers could craft transactions that drain wallets
- Prompt injection — attackers might manipulate AI context to trigger unauthorized transactions
Mitigations
| Mitigation | Addresses |
|---|---|
| Non-custodial architecture | Key exposure, supply chain |
| Transaction value limits | Hallucination, prompt injection |
| Human confirmation for high-value | All risks |
| Verified open-source servers only | Supply chain attacks |
| TEE-backed solutions | Key exposure |
| Isolated execution environments | Prompt injection, supply chain |


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