Blockchain company sues JumpCloud over North Korean hacking allegations – BizWest

LOUISVILLE — Ava Labs Inc., the New York-based cryptocurrency technology startup that developed the Avalanche blockchain platform, has announced that the Louisville company’s Directory-as-a-Service technology platform with identity authentication capabilities was “operated.” ” sued JumpCloud Inc. As a revolving door for malicious hackers. ”

The lawsuit, filed last week in Boulder County District Court, could award Ava Labs ongoing damages that could total millions of dollars for a 2023 hack that JumpCloud blamed on a North Korean state-backed group. is claimed to have brought about

“To be clear, no breach occurred because JumpCloud’s software failed to prevent the targeted attack on Ava Labs,” Ava’s complaint states. “Ironically and perversely, and completely contrary to its purpose, JumpCloud’s platform was the very gateway for threat actors to access Ava Labs’ devices, systems, and personal data. …As if it were home security. Instead of the system protecting your home, it’s like remotely opening a window for an intruder to enter.”

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A JumpCloud representative declined to comment on the Ava lawsuit, but said: 2023 Blog Posts“A sophisticated state-sponsored attacker gained unauthorized access to our systems by targeting a small number of our customers.” The blog post identified the hackers as operating from North Korea.

After the June 2023 hack, which was allegedly the result of a phishing attack on JumpCloud employees, JumpCloud “exacerbated a number of security failures by circumventing the wagons, remaining silent, and avoiding decorum and responsibility. “To assist customers in their containment and remediation efforts,” the lawsuit alleges, further endangered customers such as Ava Labs. “Instead, while customers like Ava Labs scramble to contain the damage and secure their systems and devices, JumpCloud discloses JumpCloud’s security failures to customers and provides them with useful and necessary information and assistance. We have only undertaken initiatives that do not provide.”

Ava estimates that the immediate cleanup after the hack cost her at least $637,500. “Furthermore, Ava Labs has suffered consequential damages, including but not limited to loss of goodwill and reputation, and loss of profits, as a result of the intrusion utilizing Ava Labs’ JumpCloud. The amount will be determined in court, but it will not be less than $2 million. ”

The case is Ava Labs Inc. v. JumpCloud Inc., case number 2024CV30280, filed on March 28, 2024, in Boulder County District Court.

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