New York polls crypto firms on security measures after Twitter hack

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.

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.

The agency notes that in the third phase of the hack, the attackers took aim at the Twitter accounts of crypto companies, which included NYDFS-regulated entities.

These "Responded quickly to block impacted addresses, demonstrating the maturity of New York's cryptocurrency marketplace and those authorized to engage within it. Their actions show that New York continues to set a high standard and attract only the most responsible actors."

Coinbase, Gemini and Square, all of whom provide wallet services and whose Twitter accounts were hacked, rapidly blocked the Bitcoin addresses posted by the hackers posted on Twitter.

According to NYFDS' survey, each of the companies blocked the relevant addresses within 40 minutes of their accounts being hacked.

15 surveyed crypto firms in total blocked transfers to the addresses, while seven did not.

Among those that did, Coinbase blocked around 5,670 transfers, valued at roughly $1,294,000; Square blocked 358, valued at roughly $51,000; Gemini blocked two, valued at roughly $1,8000; and Bitstamp blocked one, valued at $250. The other focus of the NYFDS survey and report was to analyze which security measures the crypto firms took to protect their social media accounts following the hack, and gather key recommendations to cement security going forward.

Placing the hack in context, NYFDS notes that in 2019, millions of people worldwide lost over $4.3 billion to cryptocurrency scams - up from just $650 million in 2018.

One scammer tactic that intersects with the Twitter hack, "Impersonating Elon Musk on Twitter," has cost reportedly already victims almost $200,000 in Bitcoin.