Cybersecurity Analysis of the FTX Crypto Heist: Part TwoWith All Transactions Halted on FTX, What Happens to the Data It Stores?
Cryptocurrency exchange FTX recently filed for bankruptcy. The founder and CEO stepped down, and millions of dollars in crypto are missing. FTX halted transactions on the platform, leaving thousands of customers and millions of dollars in the lurch. So, what happened to FTX data, and how can authorities untangle this heist?
”It really makes things terrible for anyone who has an account on FTX because they're just going to be target after target if that data makes its way either into the public domain through lawsuits or law enforcement action, or is sold on the dark web to the highest bidder,” says Hugh Brooks, director of security operations at web3 security firm CertiK.
In Part 1 of this interview with Information Security Media Group, Brooks shared how the funds were drained and where they are. In the second installment, he discusses:
- The status of data stored by FTX following the abrupt departure of FTX founder Sam Bankman-Fried and reports of millions of dollars in missing funds;
- How better crypto regulations could prevent similar events in the future;
- Best practices to set up a crypto exchange with a cybersecurity-first mindset.
Brooks also shares how this incident reflects on the overall security of the web3 industry, what it means for the cybersecurity of exchanges that were exposed to FTX and the role of decentralization for cybersecurity.
Brooks, who leads security operations at CertiK, is a product director, senior manager and consultant on technology development and deployment for cryptocurrency, data, social media and cybersecurity.