[Jaw-Dropper] FTX's Cybersecurity Was Hilariously Bad

FadingFTX4/11/2023 - Gizmodo just dropped this eye-roll inducing news. The disgraced crypto exchange had no dedicated cybersecurity staff and "protected" users assets with minimal safeguards, according to new bankruptcy filings.

Here are just two paragraphs of the whole story. The whole thing is unbelievable.

"FTX, the once beloved crypto exchange that went down in a ball of financially flames last November, appears to have spent very little effort protecting its customers’ vast reserves of digital assets. The company’s latest bankruptcy report reveals that, in addition to managing its finances like a Jim-Beam-swigging monkey, the disgraced crypto exchange also had some of the worst cybersecurity practices imaginable.

FTX Didn’t Have a Cybersecurity Staff

Despite being a company tasked with protecting tens of billions of dollars in crypto assets, FTX had no dedicated cybersecurity staff, according to Monday’s filing. None. The company never bothered to hire a CISO (a chief information security officer) to manage the company’s risks for them. Instead, they relied on two of the company’s software developers who, the report notes, did not have formal training in security and whose jobs put them at odds with prioritizing security."

This is literally criminal negligence. Full story at Gizmodo.


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Topics: Cybersecurity

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