Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Cyber Security, Quantum, Hacks, Fraud Alerts, Risks, InsurTech
New York Takes Legal Action Against Major Crypto Firms
Crypto | Oct 19, 2023
Image: Unsplash/Medienstürmer
New York Attorney General Letitia James has taken legal action against prominent cryptocurrency firms, alleging fraudulent activities of over $1 billion.
The Allegations
The lawsuit targets cryptocurrency firms Genesis Global, its parent company Digital Currency Group (DCG), and Gemini, accusing them of "defrauding" investors of over $1 billion.
Central to the lawsuit is a program named "Gemini Earn," which allowed customers to lend crypto assets like bitcoin to Genesis. Despite Gemini promoting this as a "low-risk investment," internal analyses reportedly found Genesis to be on shaky financial ground.
See: SEC Charges ‘Stoner Cats’ For Selling $8M of Unregistered Crypto Securities
The Attorney General's office claims that Gemini was aware that Genesis' loans were undersecured and, at one point, heavily concentrated with one entity, Bankman-Fried's crypto hedge fund Alameda, which subsequently faced financial difficulties.
The lawsuit seeks restitution for investors, "disgorgement of ill-gotten gains," and a ban on the involved cryptocurrency firms from the financial investment industry in New York.
Reactions from the Accused
Gemini responded on a messaging platform, stating that the lawsuit "confirms what we've been saying all along" but disagreed with the decision to sue them.
DCG expressed surprise at the Attorney General's complaint, with CEO Barry Silbert labeling the lawsuit's allegations as "baseless." DCG has emphasized its cooperation with the Attorney General's investigation over the past months.
See: Unraveling Crypto’s Role in Global Terrorist Financing
This story is developing, and it will be interesting to see how it impacts the broader crypto industry and its reputation among investors.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Consultation: OSFI Unveils Guidelines for Robust Financial System
Consultation | Oct 15, 2023
Image: Unsplash/Unseen Studio
The Office of the Superintendent of Financial Institutions (OSFI) has introduced new draft guidelines aimed at enhancing the integrity, security, and operational resilience of financial institutions for consultation
The Office of the Superintendent of Financial Institutions (OSFI) has unveiled a draft Integrity and Security Guideline to safeguard financial institutions against foreign interference and enhance their overall security.
A revised Guideline E-21 has also been introduced, focusing on operational resilience and risk management, with new expectations for business continuity, crisis management, and data risk management.
See: CSA Seeking Comments on Proposed Changes to Governance and Disclosure Practices Around Diversity
Peter Routledge, Superintendent of Financial Institutions:
Public confidence in financial institutions depends, not only on sound financial management, but also their integrity and security. These guidelines represent an incremental but critical step in clarifying our expectations of them. We hope they help financial institutions identify how to be more secure and more resilient.
🗣️ Public Consultation Open: OSFI has opened the floor for public consultations on both guidelines, inviting financial institutions, stakeholders, and the public to provide their insights and feedback.
- For the Integrity and Security Guideline, input can be sent to IS@osfi-bsif.gc.ca until November 24, 2023.
- For Guideline E-21, feedback is welcomed at resilience@osfi-bsif.gc.ca until February 5, 2024.
See: OSFI’s Evolving Focus on Integrity & Security
These guidelines are crucial in maintaining public confidence and ensuring a secure and resilient financial system in Canada. For detailed information and to participate in the consultation, visit the OSFI website.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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SBF Sues Insurer As Trial Commences Amidst Media Frenzy
Crypto | Oct 4, 2023
The high-profile trial of Sam Bankman-Fried (SBF), the founder of FTX, has commenced, drawing significant attention from the media, crypto influencers, and the general public.
Here are some key takeaways from the first day of the trial:
Trial and Witness Selection
- The courthouse was bustling with activity, and the media overflow room was filled with individuals noting every detail of the event.
- SBF faces serious charges, and the trial is expected to span approximately six weeks, although it might conclude sooner.
- The charges and potential witnesses suggest a complex and multifaceted trial that will delve deep into SBF’s business practices and the operations of FTX and Alameda.
- A list of potential witnesses was read out, including notable names like Anthony Scaramucci and several former company executives and family members.
- Institutions like Jane Street Capital, Sequoia Capital, and Binance might be mentioned during the trial, indicating the breadth of entities involved or affected by the case.
See: Sam Bankman-Fried Accused of Witness Tampering Now Awaits Trail Behind Bars – Lessons Learned
Jury Selection
- The public and potential jurors expressed a range of views on crypto, from skepticism to personal grievances due to investment losses.
- The jury selection process was meticulous and detailed, with Judge Lewis B. Kaplan ensuring potential jurors would not be influenced by external media coverage.
- Some potential jurors shared their experiences and losses in crypto investments, while others expressed skepticism and negative feelings towards the crypto industry. The final jury selection is yet to be completed but is expected to conclude soon.
Reaction and Next Steps
- Some observers noted SBF’s calm and composed demeanor, while others, including crypto influencer Tiffany Fong, commented on his altered appearance, suggesting it made him look “more criminal.”
- The trial is set to continue with the finalization of the jury selection, followed by opening statements and witness testimonies, which are all expected to unfold in the coming days and weeks.
- For those interested in every detail, Wired is hosting a LIVE FTX trial feed here
SBF Sues His Insurer to Cover Legal Bills
- Sam Bankman-Fried (SBF), amidst an undergoing a trial, has filed a lawsuit against his insurance provider, CNA, accusing them of not covering his legal costs as per their policy.
See: Ether Futures ETFs Launch. VanEck Commits 10% to Developers
This trial is not only pivotal for SBF but also holds significance for the cryptocurrency industry, as it brings to light regulatory, ethical, and operational issues within the space. The outcome may potentially influence regulatory frameworks and public perception of the crypto industry in the future.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Ransomware Grew 45% H1 2023 Targeting Smaller Organizations
Cyber Security | Sep 27, 2023
Image: Wikimedia Commons/BlueBreezeWiki
The cyber landscape in 2023 has witnessed a significant surge in ransomware attacks, with small businesses becoming the primary targets.
According to a report from Infosecurity Magazine, ransomware attackers are increasingly targeting smaller, less defended organizations. There was a 47% increase in new victims in the latter half of 2022, with many of these being small businesses with less mature cyber postures.
Specifically, 57% of the victims of the LockBit gang, known for high-profile attacks on the Royal Mail and Taiwan Semiconductor Manufacturing Company (TSMC), were small businesses.
Many of these groups are moving away from traditional encryption-based attacks. Instead, they threaten to expose and publicize sensitive information, shifting from ransomware to pure extortion tactics.
See: Small Businesses Incur Greatest Loss of Cyber Attacks | 67% Suffer Repeat Attacks Within 12 Months
Ransomware by the Numbers
- In the first half of 2023, there was a 45.27% global increase in ransomware victim organizations, totaling 2,001.
- During the same period, the sectors most targeted by ransomware were banking, retail, and transportation.
- LockBit, a dominant ransomware since 2022, primarily targeted IT, finance, and professional services.
- Nearly 50% of all ransomware victims were US-based organizations, a significant increase of 69.94% from the second half of 2022.
- LockBit was responsible for 26.09% of all ransomware attacks, and in 2022, they accounted for one in six attacks on US government offices.
- BlackCat and Clop followed LockBit, accounting for 10.59% and 10.09% of ransomware attacks, respectively.
To counter these threats, Trend Micro recommends:
- Enabling multifactor authentication (MFA) for added security.
- Regularly backing up data and storing backups in diverse formats and locations.
- Keeping systems updated to patch vulnerabilities.
- Verifying emails before opening them to prevent phishing attacks.
- Following established security frameworks like those from the US National Institute of Standards and Technology (NIST) and the UK National Cyber Security Centre (NCSC).
See: Blakes: Cybersecurity Trends in Canada: A 2023 Perspective
The ransomware landscape in 2023 is evolving, with attackers shifting their focus to smaller businesses and adopting new tactics. Organizations must remain vigilant, adopt robust cybersecurity measures, and prioritize incident response and recovery to mitigate the impact of these threats.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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How to Safely and Securely Store Your Digital Files
Sep 22, 2023
Image: Unsplash/Viktor Talashuk
Gone are the days when you’d need huge filing cabinets and boxes of paperwork. These days, most people store documents and files through digital means, either saving them directly onto their device, using external storage or uploading them to the cloud. This is much easier and saves costs on paper, but is it safe?
While storing files on your computer is certainly easier, there are data security issues to consider. Not only that but having only digital copies of your documents could mean you run into issues if you ever lose your device or your storage becomes corrupted. However, there are ways you can safely store them and not have to worry.
Backing Up Data
One of the most important things you can do to ensure your digital files are safe is to back them up regularly. Whether you save all your files to the cloud, your device or an external storage unit, you should always back them up with at least one other copy in another location. This way, you prevent loss of data due to memory issues, lost devices or other problems.
If you do run into issues with memory, it’s not necessarily the end of the world. SD card data recovery has become a lot easier. However, making backups will still save you a lot of stress and worries should you ever have a problem. You can back up physical documents this way too, ensuring that you always have a copy ready if you need it.
Using Encryption
Encryption helps keep your data secure, preventing it from being misused if it falls into the wrong hands. Whether you’re looking to protect personal and private information, financial records or client data, you should always use encryption to prevent unauthorised users from accessing it. Although it sounds complex, encrypting your files has never been easier.
There are lots of data protection tools that do it for you, and all you need to do is safely store the password or mnemonic phrases. You can use encryption to secure the local files on your computer, tablet or phone, and it’s possible to set it up on external hard drives and USB drives too. If you’re using a cloud data system, ensure that it encrypts your files for an added layer of protection.
Be Aware of Privacy
When using the web, it’s easy to get carried away sharing information and giving apps and programs access to our files. If you’re worried about data security and protecting your digital documents, you should also be concerned about online privacy. This is especially true when you’re using free services, which often make their money by collecting data on users and selling it to ad companies.
You can stay safe and keep your documents secure by being more mindful of which apps and services you use. Check what kind of permissions you’ve given to applications on your devices, and ensure you’re not giving away all of your data. Always read through the full terms and conditions of any service you use too.
Secure Your Internet Connection
Using your device on an insecure network may result in your data being accessible to other people, which is definitely something you want to avoid. You should secure your home WiFi network and generally avoid using open networks. However, you can still use an open network safely if you know how to create an encrypted tunnel between your device and the hotspot.
While it’s rare to face attacks through WiFi networks, it’s best not to take the risk, especially if you’re worried about personal documents. As long as you use a secure connection, you should be able to safely and securely protect all your files without having to worry about losing them.
Why Data Security is Important
Data security means protecting your data from unauthorised usage. Whether it’s your personal data or you run a business that collects customer data, it’s incredibly important to secure it safely. Failing to secure it could mean your personal banking information and identity are at risk of being misused. If you run a business and fail to take data security seriously, you could face major fines.
In the modern world, cyber attacks have become more frequent as criminals look to profit from digital technology. If left unsecured, your personal data could be sold or ransomed for money. Even if you might think your personal data isn’t very interesting, you never know how it may be used against you if it falls into the wrong hands.
See: Small Businesses Incur Greatest Loss of Cyber Attacks | 67% Suffer Repeat Attacks Within 12 Months
You can secure your data correctly by focusing on physical, network and system security. This means having special measures in place to restrict physical and online access to your files. You can use stronger passwords, encryption and firewalls to improve security.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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MGM Resorts Faces Major Ransomware Attack in Las Vegas
Cybersecurity | Sep 18, 2023
Image: Unsplash/David Vives
MGM Resorts fell victim to a debilitating ransomware attack. The impact was widespread, affecting several of its properties, notably the iconic MGM Grand and Bellagio casinos in Las Vegas.
The recent cybersecurity breach at MGM Resorts has sent shockwaves throughout the industry, raising concerns about the vulnerability of even the most fortified systems.
The Incident and Perpetrators
- MGM Resorts, one of the largest casino owners in Las Vegas, fell victim to a significant cybersecurity attack. The first signs of the attack emerged on a Sunday evening, with guests experiencing difficulties accessing their rooms due to disabled mobile apps and digital key cards. The ramifications extended to ATMs, cashier offices, parking systems, and even slot machines.
- While the recovery process has been arduous, with MGM's digital platforms still facing issues days after the attack, the perpetrators remain a topic of debate. A group named ALPHV has claimed responsibility, citing a targeted approach via LinkedIn. However, another faction, Scattered Spiders, is also under suspicion.
- Videos circulated on social media showed video slot machines that had gone dark, and some customers reported that their hotel room cards weren't functioning. By the following Friday, booking capabilities were still down, with MGM Resorts offering penalty-free room cancellations through September 17th.
See: Small Businesses Incur Greatest Loss of Cyber Attacks | 67% Suffer Repeat Attacks Within 12 Months
- Among the affected was FTC Chairwoman Lina Khan, who, along with about 45 other guests, had to manually write down their credit card information when checking into the MGM Grand Hotel due to the reservation system's shutdown. This incident raised concerns about the protection of consumer data, especially when such high-profile individuals are involved.
Implications and Response
- The MGM breach wasn't an isolated incident. By the following Thursday, Caesars Entertainment, the world's largest casino owner, confirmed it too had been hit by a cybersecurity attack.
- While MGM Resorts' systems were still down, Caesars reported that its casino and hotel computer operations weren't disrupted. However, the company couldn't confirm the security of personal information of its vast customer base following the data breach. This series of attacks has shattered the public perception that casino security is impenetrable, requiring an "Oceans 11"-level effort to defeat.
- The financial impact can be calculated based on lost revenue and increased costs - one report calculates approximately $650k lost per hour.
- The nature and scope of the attack might indicate significant issues in the company's control system. Concerns include how so many systems were vulnerable to a single attack, potential failures in authentication procedures, and the inadequacy of backup systems and business continuity plans.
- The MGM incident has sparked discussions on the materiality of such breaches. From a quantitative standpoint, businesses need to evaluate the financial repercussions, considering lost revenues and additional costs. On the qualitative front, the nature and extent of the attack can indicate significant systemic issues that stakeholders should be made aware of.
- While the Securities and Exchange Commission's (SEC) new rules on cybersecurity attack disclosures were not applicable to this incident, they are set to be enforced by year-end, making this event all the more significant.
Lessons for the Future
The recent cyberattacks on MGM Resorts and Caesars Entertainment highlight the evolving challenges in the realm of cybersecurity. As technology continues to advance, so do the tactics and strategies of cybercriminals. The hospitality industry, with its vast troves of personal and financial data, remains a prime target. It's imperative for businesses to continually update and fortify their cybersecurity measures, ensuring the safety and trust of their patrons.
See: Zurich CEO: Cyber Attacks May Become ‘Uninsurable’
- The interconnectedness of modern systems and the risks associated with a single point of failure.
- The importance of stringent authentication procedures to prevent social engineering attacks.
- The critical role of backup systems and business continuity plans in ensuring operational resilience.
The incident emphasizes the need for businesses to adopt a proactive approach to cybersecurity, continually evaluating and updating their measures in line with evolving threats.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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SEC Accuses Binance.US of Not Cooperating With Investigation as Executives Exit
Crypto | Sep 15, 2023
Image: Unsplash/Loic Leray
Binance.US grapples with heightened SEC scrutiny and internal upheavals, marking a tumultuous phase for the leading crypto exchange
- The U.S. Securities and Exchange Commission (SEC) has accused Binance.US of not cooperating in an ongoing probe.
- The SEC alleges that the company's staking, clearing, and brokerage services violate federal securities law.
- The regulatory body is particularly concerned about Binance.US's use of Ceffu, a custody service offered by Binance's international arm. This, according to the SEC, violates a previous agreement intended to ensure that only local U.S. staff have access to funds.
Executives Exit and Internal Changes
- Adding to the complexity, key risk executives are leaving or recently exited Binance.US. company:
- Krishna Juvvadi, the head of legal;
- Sidney Majalya, the chief risk officer;
- This comes on the heels of the departure of Binance.US CEO Brian Shroder, who left the company amid layoffs of roughly a third of its workforce.
- Norman Reed, Binance.US's chief legal officer and general counsel, will step in as interim CEO.
- Reed is an alum of the SEC, having spent six years as special counsel in its market regulation division.
- His appointment follows Brian Brooks, who left the role citing differences over strategic direction.
See: SEC’s Sealed Court Filing Raises Eyebrows for Potential Binance Setback
The regulatory challenges facing Binance.US are a microcosm of the broader issues affecting the cryptocurrency industry. As the SEC tightens its grip, the company is undergoing significant internal changes, including executive departures and layoffs.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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