FTX Crypto Heist Cybersecurity Analysis: Part 2

Hugh Brooks, Director of Security Operations, CertiK (Image: CertiK)

Cryptocurrency exchange FTX recently filed for bankruptcy. The founder and CEO has resigned and millions of dollars in crypto are missing. FTX halted trading on the platform, leaving thousands of customers and millions of dollars behind. So what happened to the FTX data and how can authorities unravel 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 this data gets 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 First part of this interview with Information Security Media Group, Brooks shared how the funds were drained and where they are. In the second part, he mentions:

  • The state of data stored by FTX following the abrupt departure of FTX founder Sam Bankman-Fried and reports from millions of dollars in missing funds;
  • How better crypto regulations could prevent similar occurrences in the future;
  • Best practices for setting up a crypto exchange with a cybersecurity mindset.

Brooks also shares how this incident impacts the overall security of the Web3 industry, what it means for the cybersecurity of exchanges that have been exposed to FTX, and the role of decentralization for cybersecurity.

Brooks, who leads security operations at CertiK, is a product director, senior executive, and technology development and deployment consultant for cryptocurrency, data, social media, and cybersecurity.


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