DraftKings Files Form S-1 Registration Statement With The US SEC Indicates SBTech Hit By Ransomware Attack
DraftKings Files Form S-1 Registration Statement With The US SEC Indicates SBTech Hit By Ransomware Attack
June 18, 2020
DraftKings Files Form S-1 Registration Statement With The US SEC Indicates SBTech Hit By Ransomware Attack
DraftKings Files Form S-1 Registration Statement With The US SEC Indicates SBTech Hit By Ransomware Attack
June 18, 2020

DraftKings, the online fantasy-sports company, has filed a Form S-1 registration statement with the US Securities and Exchange Commission (SEC), which indicates SBTech, a company DraftKing acquired, was hit by a ransomware attack in March.

It has been reported that according to the registration form, which is required by the SEC before companies may go public on Nasdaq, SBTech, an online gambling technology provider that merged with DraftKings, suffered the cyber attack before the merger finalized on March 27.

However, the SEC’s filing stated:

“On March 27, 2020, SBTech detected a ransomware attack on its network (the“ cybersecurity incident ”). SBTech immediately shut down its data centers. The operation of the sports betting and iGaming services of SBTech’s customers was interrupted as a result of the cybersecurity incident. SBTech informed relevant regulatory authorities and notified affected partners and customers. SBTech believes it is in compliance with applicable regulatory requirements related to the cybersecurity incident.”

ZDNet said that the online betting company had to place $30 million in escrow on April 10 to deal with the cyberattack. At that time, this attack was not yet confirmed as the result of ransomware, where the funds in escrow were set aside to cover damage costs and litigation fees.

ALSO READ :  CoinGecko Says DeFi Projects Seem To Be Well-Known In Crypto Circles

As per the report, no additional details were disclosed in the SEC filing.

It has been analyzed that DraftKings clarified that the interruption to its operations led SBTech to compensate its customers for downtime. They stated that this had an immaterial financial impact on SBTech and DraftKings to date.

Likewise, SBTech’s investigation concluded that the impact of the cybersecurity incident was successfully mitigated.

Thus, it also included recommendations for security improvements to SBTech’s network and its information technology controls.

Source: Cointelegraph | Image: Pixabay


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Money on Chain Launches TEX With A Unique Twist

Money on Chain Launches TEX With A Unique Twist

Money on Chain (DeFi protocol), a lending platform and stablecoin issuer based on Bitcoin (BTC) sidechain RSK, has announced the launch of TEX, an automated token swap platform based on an order book, with a unique...

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.