MGM Resorts Battles FTC Probe Amidst Ransomware Fallout: Gambling Giant’s Legal Showdown Over $100M Cyber Heist

In a twist worthy of a Vegas show, MGM Resorts sues the FTC to fold their probe, all because boss Lina Khan hit the jackpot of bad timing, checking in amidst a cyber heist! Now that’s a high-stakes game of chance.

Hot Take:

Well, folks, grab your popcorn because MGM Resorts is rolling the dice in a high-stakes game of ‘Sue the Regulator.’ You can’t make this stuff up: The FTC’s boss, Lina Khan, was chilling at MGM when cyber goons played their ransomware roulette with the casino’s network. Now MGM is crying foul, claiming Khan’s stay at their digital House of Horrors is a conflict of interest. It’s like getting food poisoning at a restaurant and then being asked to write a Yelp review. Awkward!

Key Points:

  • MGM Resorts hit the jackpot of irony, suing the FTC to halt a probe because Chair Lina Khan was a guest during the cyberattack.
  • The casino claims the intrusion cost them a cool $100 million and doesn’t want the FTC’s scrutiny to gamble away more of their chips.
  • Scattered Spider, the cyber gang with a name cooler than most bands, allegedly breached MGM’s digital vaults with a simple phone call hustle.
  • FTC’s Khan had a hands-on experience with MGM’s data security—or lack thereof—when asked to jot down her credit card info on paper.
  • MGM wants Khan to fold her hand and recuse herself, but the FTC is holding its cards tight to its chest, denying the recusal request.

Need to know more?

A High-Stakes Lawsuit

Picture this: The MGM Resorts network gets hit by cyber baddies, and who's there to witness the aftermath? None other than Lina Khan of the FTC, who's now like the guest who saw too much. MGM is now suing the pants off the watchdog, demanding Khan step away from the table or they'll call the whole game rigged.

The Heist of the Year

Scattered Spider, the cyber gang that could double as a metal band, claims they breached MGM's fortress with just a 10-minute charm offensive on the IT help desk. MGM's systems went dark faster than a casino at closing time, which is probably not the kind of jackpot they were hoping for.

Slot Machine of Information Requests

Post-attack, the FTC, like a nosy neighbor, asked MGM for an encyclopedia of information. The casino is now crying that the FTC's probe is like being asked to give a tour of their house right after a burglary. And to add insult to injury, MGM is now facing a royal flush of fifteen consumer class actions. Talk about a bad beat.

Khan's Unlucky Check-In

When Khan tried to check into the MGM, she got a taste of the casino's data security measures, or rather the lack thereof. After scribbling down her credit card on a piece of paper like she's at a lemonade stand, she asked the million-dollar question: How's MGM handling data security? The employee's response was probably less reassuring than a bluff in high-stakes poker.

FTC's Poker Face

MGM played their hand by requesting Khan to cash out and leave the game, but the FTC is not blinking. They're sticking to their guns, keeping Khan in the game, and showing no signs of folding under pressure. Now we wait to see if MGM's lawsuit will be a game-changer or if they're just bluffing.

Neither the high-rolling MGM nor the watchdog with a poker face has spilled the beans to The Register's request for comment. But don't worry, the chips are still on the table, and the game is far from over. We'll keep you posted if the dealer shows a new card.

Tags: Conflict of Interest, data breach, Data Security, FTC Lawsuit, MGM Resorts, ransomware attack, Scattered Spider