Illusory Systems settles with FTC over 2022 cryptocurrency hack

CyberScoop

December 16, 2025 at 11:46 PM

Overview

Illusory Systems has reached a settlement with the Federal Trade Commission (FTC) regarding a 2022 hack that compromised its Token Bridge software. The FTC charged the company for misrepresenting the security measures in place, stating that the executives did not implement adequate safeguards to protect user assets. As a result of the breach, attackers were able to exploit vulnerabilities, leading to significant financial losses. This incident underscores the need for companies in the cryptocurrency space to maintain transparent and effective cybersecurity practices. The settlement may also serve as a warning to other firms about the importance of accurately representing their security capabilities to users and regulators.

Key Takeaways

Affected Systems: Token Bridge software
Timeline: Disclosed on October 2023

Original Article Summary

The company was charged with materially misrepresenting the cybersecurity of its Token Bridge software as executives failed to implement reasonable security. The post Illusory Systems settles with FTC over 2022 cryptocurrency hack appeared first on CyberScoop.

Impact

Token Bridge software

Exploitation Status

No active exploitation has been reported at this time. However, organizations should still apply patches promptly as proof-of-concept code may exist.

Timeline

Disclosed on October 2023

Remediation

Not specified

Additional Information

This threat intelligence is aggregated from trusted cybersecurity sources. For the most up-to-date information, technical details, and official vendor guidance, please refer to the original article linked below.

Related Topics: This incident relates to Exploit.

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