Rapid Response and Assurance: Uncompromised Customer Accounts and Security Despite Third-Party Service Provider Cybersecurity Incident
TORONTO, December 30, 2023 /PRNewswire/ — The INX Digital Company, Inc. (NEO: INXD, OTCQB: INXDF, INXATS: INX) (the “Company” or “INX”), a security token and digital asset trading platform, an American broker-dealer, alternative trading system, transfer agent and inter-dealer broker (through its subsidiaries), announced that the December 20, 2023it became aware of a cyberattack that occurred on the computer systems of a third-party supplier providing services to one of the Company’s subsidiaries.
As a result, a malicious actor managed to access the third-party provider’s servers and execute unauthorized transactions, resulting in a loss of funds for the Company’s subsidiary of approximately $1.6 million. The Company took immediate steps to remediate the security breach and investigate the nature and scope of the incident. The Company has also notified relevant law enforcement in the appropriate jurisdictions and is working with the relevant trading venue to investigate this incident and take appropriate legal action.
INX customers were not affected by the incident and the security breach at the third-party provider had no impact on INX platforms and servers. No personal information or other data of INX customers has been compromised and INX.One remains fully operational. The Company has implemented additional security measures and continues to actively monitor any suspicious activity.
The Company holds a “Reserve Fund” (which is not part of the operational capital of the Company) in the amount of $36,023,000, which is restricted and specifically designed to cover losses of clients and INX, if any, resulting from cybersecurity breaches or thefts, execution errors of the trading platform or its technology and defects in counterparties, including cases where counterparties do not have sufficient collateral to cover losses. . The Company will seek to recover lost funds by any means necessary. In the event of failure, and once such efforts have been exhausted, the Company will use the Reserve Fund to recover the loss resulting from such security incident. There is no guarantee that lost funds will be recovered.
The Company does not expect this incident to have a material impact on its business operations or financial results.
About INX:
INX provides regulated trading platforms for digital securities and cryptocurrencies. By combining traditional market expertise and a disruptive fintech approach, INX delivers cutting-edge solutions to modern financial problems. INX is led by an experienced and dedicated team of business, finance and technology veterans with the shared vision of redefining the world of capital markets through blockchain technology and a disciplined regulatory approach.
About INX Digital Company, Inc..:
INX Digital Company, Inc. is the holding company of the INX Group, which includes regulated trading platforms for digital securities and cryptocurrencies. INX Group’s vision is to be the preferred global regulated hub for digital assets on the blockchain. The INX Group’s overall mission is to bring communities together and empower them for financial innovation. Our journey began with our initial public offering of INX tokens, during which we raised 84 million US dollars. INX Group is shaping the blockchain assets industry through its willingness to work in a regulated environment under the oversight of regulators such as the SEC and FINRA. For more information, please visit the INX Group website at https://www.inx.co/.
Caution Regarding Forward-Looking Information and Other Disclosures
This press release contains statements that constitute “forward-looking information (“forward-looking information”) within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking information and are based on expectations. , estimates and projections as of the date of this press release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using expressions such as “expects to” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecast”, “estimates”, “believes” or “intends” or variations of such words and expressions or indicating that certain actions, events or results “may” or “could”, “would”, “could” or “will” be expected to occur or be achieved ) are not statements of historical fact and may be indicative of forward-looking information. In disclosing the forward-looking information contained in this press release, INX has made certain assumptions, including with respect to the continued development of the INX trading platform, the completion of the transactions described herein and the development of forward-looking information. digital assets industry. Although INX believes that the expectations reflected in such forward-looking information are reasonable, it can give no assurance that the expectations contained in such forward-looking information will prove to be correct. Known and unknown risks, uncertainties and other factors that may cause actual results and future events to differ materially from those expressed or implied by such forward-looking information. These factors include, but are not limited to, regulatory developments, the state of the digital securities and cryptocurrency markets, and general economic conditions. Accordingly, readers should not place undue reliance on any forward-looking information contained in this press release. Except as required by law, INX disclaims any intention and assumes no obligation to update or revise any forward-looking information to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting these forecasts. search for information or other.
Neo Exchange is not responsible for the suitability or accuracy of this press release. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities of United States. The securities have not been and will not be registered under the United States Securities Act or any state securities laws. and may not be offered or sold in United States or to U.S. persons, unless registered under the US Securities Act and applicable state securities laws or a an exemption from this registration is possible.
For more information, contact:
INX Digital, Inc.
Investor Relations
+1 855 657 2314
Contact: Alan Silbert
E-mail: investorrelations@inx.co
SOURCE INX Digital, Inc.
