Evolve Bank & Trust has recently confirmed a cybersecurity incident. The cybercrime group Lockbit 3.0 reportedly released customers’ personal identification data on the dark web. The bank, known for its fintech partnerships and facilitation of customer accounts for firms with significant crypto user bases, is now under scrutiny. The incident has raised concerns about the […]
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Gary Gensler Tells Lawmakers SEC Takes Cybersecurity ‘Seriously’ After X Account Hack
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has assured lawmakers that the securities regulator “takes its cybersecurity obligations seriously.” Lawmakers raised concerns following the hacking of the SEC’s account on social media platform X, where a post falsely announced the approval of spot bitcoin exchange-traded funds (ETFs). Gensler: SEC Takes Cybersecurity Obligations Seriously […]
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FTX Restores Full Access to Claims Portal After Cybersecurity Breach
The portal allowing FTX customers to file claims with the bankrupt cryptocurrency exchange is again fully operational after a recent security incident. User accounts that were affected by the breach in August have been unfrozen, the failed crypto trading company announced.
Crypto Exchange FTX Ups Security on Claims Portal Following Kroll Incident
The FTX claims portal is once again fully accessible for customers of the cryptocurrency exchange who suffered losses as a result of its collapse in November, 2022. In late August, the company froze some user accounts after a cyberattack against Kroll, the agent managing the claims.
Claimants may now resume activities on the platform, FTX said on Saturday in a post on X, formerly Twitter, updating the public about the case, pointing out that additional measures have been implemented to secure the portal and stating:
Following our review and assessment of the recent Kroll cybersecurity incident, FTX has unfrozen all affected accounts.
FTX suspended some accounts soon after Kroll revealed on Aug. 25 that a cyberthreat actor had targeted a T-Mobile US account belonging to one of its employees. The company described the incident as a “highly sophisticated ‘SIM swapping’ attack” and explained:
Specifically, T-Mobile, without any authority from or contact with Kroll or its employee, transferred that employee’s phone number to the threat actor’s phone at their request.
According to Kroll, the attacker apparently gained access to some files containing personal information of bankruptcy claimants in the cases of FTX, Blockfi, and Genesis. It emphasized that actions were taken to secure the affected accounts, adding it had no evidence that other systems or accounts had been impacted.
Meanwhile, FTX received permission from a bankruptcy judge to liquidate its digital assets valued at more than .4 billion in order to repay creditors. Its holdings comprise a number of different cryptocurrencies, including 0 million in bitcoin (BTC), 2 million in ethereum (ETH) and .16 billion in solana (SOL).
Do you think that the FTX claims portal is now safe? Share your thoughts on the subject in the comments section below.
Former SEC Official Calls CBDC ‘the Most Absurd Financial Idea’ Citing Unnecessary Risks, Privacy, Cybersecurity Concerns
The U.S. Securities and Exchange Commission’s (SEC) former head of internet enforcement has called the creation of a central bank digital currency (CBDC) “the most absurd financial idea in the history of monetary policy.” He warned that a central bank digital currency not only creates “a multitude of unnecessary risks relating to global financial systemic stability,” but it also “opens up a Pandora’s box of global financial privacy problems, conflicts, and cybersecurity concerns.”
Stark Slams CBDC Creation
Former U.S. Securities and Exchange Commission (SEC) official John Reed Stark criticized cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs) in a lengthy tweet on Tuesday. Stark is currently president of cybersecurity firm John Reed Stark Consulting. He founded and served as chief of the SEC Office of Internet Enforcement for 11 years. He was also an SEC enforcement attorney for 15 years.
The longterm crypto skeptic wrote:
The creation of a CBDC is perhaps the most absurd financial idea in the history of monetary policy.
He argued: “First off, just like crypto and stablecoins, you must begin by answering the question of what problem does a CBDC actually solve. Why do we need a CBDC? There is no answer to that question.”
The former SEC official opined: “There already exists a litany of digital currencies that work incredibly well and are also trusted because they are regulated, audited and overseen by democratic government authorities and run by regulated, FDIC or SIPC-insured, U.S. registered financial institutions.”
He then criticized politicians and lawmakers who have voiced their support for crypto innovations, stating: “What is so incredibly disturbing is that under the auspices of ‘innovation,’ some politicians will preach the gospel of crypto while not only completely, ignoring crypto’s dire externalities, but also failing to understand that crypto is not innovative at all.”
Stark proceeded to caution about the risks of a central bank digital currency. “The risks of a CBDC remain myriad and raise a variety of important policy questions, including how a CIBC might affect financial sector market structure, the cost and availability of credit, the safety and stability of the financial system and the efficacy of monetary policy,” he detailed.
Concurring with Professor Hilary Allen of the American University Washington College of Law (AUWCL), who testified about stablecoins and CBDCs before the U.S. Senate Committee on Banking, Housing, and Urban Affairs in December last year, Stark stressed:
Not only does a CBDC create a multitude of unnecessary risks relating to global financial systemic stability, but a CBDC also opens up a Pandora’s box of global financial privacy problems, conflicts and cybersecurity concerns.
He concluded: “The bottom line: The mammoth costs and challenges of creating a CBDC could not possibly be worth the risks and costs associated with actually having a CBDC.”
The former SEC internet enforcement chief agreed with U.S. Senator Ted Cruz (R-TX) who launched a bill in March “to prohibit the Federal Reserve from developing a direct-to-consumer” central bank digital currency. “Whatever his rationale, Senator Ted Cruz gets it right with his CBDC prohibitive legislation — it’s a bad idea that needs to be stopped dead in its tracks,” Stark emphasized.
Several other lawmakers have introduced CBDC-related bills. In February, U.S. Congressman Tom Emmer (R-MN) introduced the Central Bank Digital Currency Anti-Surveillance State Act “to halt efforts of unelected bureaucrats” from “stripping Americans of their right to financial privacy.” U.S. Congressman Alex Mooney (R-WV) announced in May that he has introduced the Digital Dollar Pilot Prevention Act that prohibits the Federal Reserve from establishing, carrying out, or approving a program intended to test the practicability of issuing a CBDC. Several states have also resisted CBDCs. Florida Governor Ron DeSantis, for example, signed legislation in May that bans the use of a central bank digital currency in his state.
Do you agree with John Reed Stark about central bank digital currencies? Let us know in the comments section below.
Decentralized Cloud Storage as a Response to Cybersecurity Issues
- Cybersecurity trends in 2021 involve attacks at higher rates than in the past.
- Centralized storage solutions are prone to plenty of data protection challenges.
- StorX aims to introduce users to Decentralized storage solutions with blockchain.
Cybersecurity had a difficult time in 2021 with high-profile breaches such as Colonial Pipeline and Solar Winds. Aside from that, there were also dozens of other breaches that resulted in major economic and security-related impacts.
Work has rapidly shifted into remote and hybrid offices, and hackers have taken advantage of this. Vulnerabilities and gaps in security are prevalent in unsecured locations that remote working has introduced. These gaps have been exploited at higher rates than in the past.
This 2022, cybersecurity is something to look out for considering the trend in the previous years.
One section of cybersecurity is the Global Cloud Storage market. This market is estimated to grow from .1 billion in 2020 to 7.3 billion by 2025. This market– serviced by companies like Dropbox, Apple, and Google– have changed the way company operations work thanks to their cloud storage services. However, this service isn’t free of problems.
Centralized Cloud Storage has plenty of data protection challenges. Issues such as data privacy, cyber-attacks, and data manipulation still exist among others. This is a direct cause of having third-party entities govern users’ private data.
For this reason, Decentralized Cloud Storage is an important alternative to look out for. This concept aims to democratize the market of cloud service providers, which is highly monopolized. Rather than bringing users to a centralized service provider, it instead allows users to rent storage from individual farmers.
There are several advantages of a decentralized method of storage. Namely, the separation from centralized intermediaries increases security and decreases forms of censorship.
Companies such as StorX are proponents for Decentralized Cloud Storage. Companies that help users in securely encrypting, fragmenting, and distributing important data across multiple hosting nodes scattered across the globe.
StorX specifically is an upcoming start-up with a network based on the XDC network, allowing it to be faster; cheaper; and more energy-efficient than its competitors.
Image: Pixabay
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