The New York Department of Financial Services, or NYDFS, has released a lengthy report analyzing the impact of July’s high-profile Twitter hack, which resulted in the theft of over $118,000 worth of Bitcoin (BTC).
Far beyond the immediate material impact, the NYDFS states that the incident exposed deep cybersecurity weaknesses of a publicly-traded social media company valued at $37 billion and counting over 330 million active monthly users. The discovery has serious consequences in light of the platform’s ever-expanding influence on both financial markets and the political sphere.
Two key sections of the NYFDS report, published on Oct. 14, tackle the Twitter hack’s impact on the department’s cryptocurrency licensees, and how these companies responded to protect their clients from the fraud. NYFDS also surveyed and compiled crypto firms’ recommendations on how to prevent a similar cyberattack from succeeding in the future.
The agency notes that in the third phase of the hack, the attackers took aim at the Twitter accounts of crypto