Twitter hack: financial regulator demands answers

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  • NYDFS releases report on twitter hack
  • Crypto companies were able to stop some of the transactions 
  • Crypto companies beseeches users to use stronger passwords 

New York Department of Financial Services (NYDFS) recently released a report in which it detailed why firms in the crypto industry needed to do much more in terms of security protocols for their users after the infamous Twitter hack.

The report comes in the wake of a high profile scam which took place on Twitter where the accounts of major celebrities and influential people were hacked to perpetrate one of the largest bitcoin scams ever.

The New York based financial authority believes that “Twitter hack” showed why a huge technological firm like Twitter should take its security measures with more level of seriousness and as its political and technological influence keeps rising, the company should also be rising to meet the challenges that this influence brings.

The agency which surveyed some of the companies that went under the attack in the crypto industry believes that since the companies were operating under its legal jurisdiction, it had every right to investigate how they responded to the hack so as to mitigate against a future recurrence.

How the crypto companies reacted to twitter hack 

Based on the release report, 22 companies were asked how they responded to the hack. 15 of them said they were able to stop transfers to the addresses posted for the Twitter hack, while seven said they were unable to.

It was discovered that those who were unable to block the transactions were operating a business model that did not allow them to be able to handle transactions and custody services directly. This, it was believed shaped how their response was.

The report made it known that Coinbase was able to block almost 6000 transactions worth over a million dollar while Square was able to stop 358 transactions worth $51,000 and Gemini blocked just two transactions that were worth $18,000.

The companies recommended that their users implement stronger passwords and also a multi-authentication process before transactions can be approved

Kamsi King

Kamsi King

King Kamsi is a fintech and digital currency writer and enthusiast. He is keenly interested in blockchain and cryptocurrency and their global adoption. When not busy with writing, he can be found hobnobbing in forums with the best minds in crypto, both developers and startup founders.

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