cybersecurity

The U.S. Federal Trade Commission (FTC) is moving to finalize a landmark settlement with Illusory Systems Inc., the company behind the now-infamous Nomad crypto bridge that was drained of nearly all user funds in a massive 2022 hack. The proposed agreement follows a lengthy investigation and includes strong new obligations for the firm.
If approved, Illusory will be permanently banned from misleading users about its security protocols. The company would be forced to implement a formal cybersecurity program, undergo third-party audits every two years, and return any unrecovered funds if found.

A $186 Million Wake-Up Call for the Industry
According to the FTC, the hack resulted in an estimated $186 million in stolen digital assets, with over $100 million in losses absorbed directly by retail users. The attack was made possible by what the agency describes as “severe negligence” in Nomad’s internal response systems.
One of the most startling failures involved a delayed reaction due to the absence of any structured emergency protocol. “At the time of the breach, the platform relied on an engineer sending code via airplane Wi-Fi,” the FTC stated. “That delay proved fatal.”
The incident exposed a critical flaw introduced in a smart contract during a June 2022 update. On August 1st, hackers exploited the vulnerability, draining assets across multiple tokens – including Ethereum (ETH), USDC, DAI, and WBTC – within hours.

FTC: False Security Claims and Ignored Best Practices
The FTC accuses Illusory of marketing Nomad as a “security-first” solution while failing to follow even basic software development standards. Despite publicly claiming that all smart contracts underwent extensive testing, engineers admitted post-hack that proper testing protocols had often been skipped.
Worse yet, the platform lacked any dedicated reporting or escalation procedures for potential exploits. The agency argues this directly violated the Federal Trade Commission Act and left users dangerously exposed.

Settlement Under Review – Public Comments Invited
The FTC’s signed consent agreement is currently open to a 30-day public comment period. If no objections arise, the settlement could soon be finalized. It includes mandatory security reforms, financial restitution, and oversight of Illusory Systems’ future operations.
Nomad, launched in 2021, was a cross-chain bridge enabling token transfers between blockchains like Ethereum and Avalanche. After the breach, the team managed to recover just $22 million of the stolen funds.

Arrest in Israel Adds Another Twist
In a dramatic postscript, Israeli authorities earlier this year arrested Alexander Gurevich, the alleged mastermind behind the Nomad exploit. According to investigators, Gurevich attempted to flee to Moscow shortly after changing his legal name. He was apprehended at the airport before boarding his flight.
The Nomad case underscores a critical need for tighter cybersecurity standards across Web3 infrastructure – and offers a stark reminder that regulators are no longer sitting on the sidelines.

#CryptoHack , #BlockchainSecurity , #CyberSecurity , #Web3 , #DigitalAssets

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a female from Ukraine, who has been charged with being involved in two groups that were involved in cyber-attacks in support of Russia. The female suspects of these cases has been identified as Victoria Eduardovna Dubranova. She is thirty three years of age. This female has been requested to move to the United States of America this year, as she has been detained in a foreign country.
These groups are named "CyberArmyofRussia Reborn" and "NoName." These groups usually published on Telegram channels after their attacks, and their aim was to let the world know that these groups were present and powerful. Their most common method of attack was a form of attack called a "Distributed Denial of Service." A Denial of Service attack aims to overload a website with as much traffic as possible, hoping that it will make it malfunction. This form of attack does not involve gaining access to personal information but can cause a website to malfunction for a period of time when it occurs.
According to the court documents, Dubranova also facilitated this by providing equipment as well as tasks that aided these groups. These documents also reveal that she did not participate in the attacks but aided those who carried out the attacks. She also facilitated transactions of digital assets that came from individuals who financed these groups. These groups used these finances to maintain their attack platforms online. Some of these finances were in form of cryptocurrencies, which would make it difficult for normal police investigations.
These groups claimed that they were fighting in order to help Russia. They targeted institutions that would undermine public trust and slow down their work in periods of political turmoil. Thus, for example, they targeted public transport, healthcare pages, and other public services in the US and other friendly states. This would pose a message as well as make it difficult for some individuals to live their lives as usual, even if it was only for a period of time.
Chainalysis, a group that looks at how assets move in the world of cryptocurrencies, also noticed that it has become difficult for attack groups online due to arrests and sanctions. This is because, when those providing support are arrested, it becomes difficult for the group to maintain their systems. Additionally, it will also become difficult for those groups to acquire funds as well as ways of concealing their tools.
The Department of Justice announced that it would continue investigating connections between online crimes and online assets. Furthermore, it has been announced that individuals who support online attack groups from anywhere in the world, but with no direct connections to the United States, will be persecuted. The campaign against attack groups, as seen in the indictment of Dubranova, has not stopped, and it has been shown that the United States will take immediate actions when evidence of attack support has been discovered. #CyberCrime #DoJ #CyberSecurity #CryptoNews