The saga surrounding the security breach impacting a growing list of finance technology firms has taken an even stranger turn. Last week, Evolve Bank & Trust disclosed that it had suffered a cyber-attack, confirming that sensitive data had made its way onto the dark web. In a surprising move, Evolve has now issued a cease and desist to a newsletter journalist who has been diligently reporting on the unfolding events.
Jason Mikula, the writer behind the esteemed Fintech Business Weekly, shared with TechCrunch that he received a cease and desist notice from the financial institution. The document warned against distributing data from the dark web to any fintech companies potentially affected by the breach.
Mikula clarified to TechCrunch that he had not been distributing such information but had offered to assist and had viewed some of the compromised files himself. Investigating hacked data is a standard journalistic method for verifying the scale and detail of cybersecurity incidents.
He mentioned having connections with four individuals who have access to some of the stolen data uploaded on the dark web and has personally reviewed portions of this information.
A major concern, as outlined by Mikula based on conversations with industry insiders, is that not all fintech firms involved are fully informed about the specifics of the data stolen during the breach.
“To my understanding, some fintechs have been left in the dark about the particulars of the breach by Evolve and thus were unable to take precautionary measures or notify their users,” Mikula explained to TechCrunch.
Mikula is of the belief that accessing the files would enable these companies to (1) verify the breach and the types of data compromised and (2) pinpoint which of their customers were affected,” he elaborated.
Through his updates on the social media platform X and in his newsletter, Mikula has been providing pivotal information about the confirmed fintech entities involved in the Evolve Bank breach, earning high praise from the community. Parrot Capital, for instance, lauded him on X for offering superior assistance to those impacted over any other sources. See the X post here.
Yesterday, Mikula revealed he was confronted with the C&D upon awakening but insists on continuing his responsible reporting on the matter. TechCrunch has sought comments from Evolve regarding the situation.
In a related development, as Evolve engaged in legal maneuvers against Mikula, a group of senators on July 1 publicly called for action by those associated with the troubled fintech Synapse. They demanded immediate action from Synapse, its owners, and its partners including Evolve Bank, to unfreeze customer funds. Synapse had been pushed into filing for Chapter 7 bankruptcy back in May, leaving customers without access to their assets since.
The senators have implicated both Synapse’s partners and investors in the matter of the unaccounted customer funds, suggesting between $65 million and $95 million are missing. However, Synapse, along with Evolve and other stakeholders, deny responsibility, pointing fingers at each other.
The letter by the senators was directed at W. Scott Stafford, the President and CEO of Evolve Bank & Trust, as well as key investors and major banking and fintech partners of the now-bankrupt Synapse.
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