Nomad’s $100M Blunder: FTC Demands Payback for Cybersecurity Snafu
The Federal Trade Commission (FTC) has proposed that Illusory Systems, trading as Nomad, must repay users after a 2022 cyberattack drained $186 million. Allegedly, Nomad’s “security-first” promise was as real as a unicorn on a unicycle. Now, the FTC wants $37.5 million in refunds, a security overhaul, and no more fibs about cybersecurity.
Hot Take:
Nomad, the cryptocurrency bridge that promised to be a “security-first” product, somehow managed to lose $186 million in a cyber heist. Now, thanks to the federal babysitters at the FTC, they’re being forced to pay back some of what they lost. Who knew that “security-first” didn’t mean “security-only”? Perhaps next time they’ll prioritize securing the barn door before the digital horses escape!
Key Points:
- Nomad’s inadequate security measures led to a $186 million cyber heist in 2022.
- The FTC is stepping in, demanding Nomad repay $37.5 million to affected users.
- Nomad must adopt a comprehensive security program with regular third-party assessments.
- The company has agreed to the settlement terms, currently awaiting public comment and a second FTC vote.
- Nomad has gone into digital stealth mode, halting public communications since 2023.
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