Reserve in the millions according to cyber attack: Sbtech secures itself

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Peter Brandt 17. April 2020

The online gambling service provider SbTech will travel a total of $ 30 million for possible compensation due to a cyber attack at the end of March. The money is formed as free capital for at least two years as a reserve. This step took place in consultation with the US stock exchange supervision. If claims for damages arise from the consequences of the cyber attack, the money should serve to compensate for it. The reserve formation is secured to the gigantic deal between Sbtech and the Diamond Eagle Acquisition Corporation (DEAC).

After a cyber attack on the online gambling service provider Sbtech, it now has to form a million reserve for possible complaints. ((©madartzgraphics/Pixabay)

Various providers of online gambling are affected for days

The cyber attack on the online gambling service provider Sbtech took place at the end of March and had dramatic consequences. Hundreds of international partners who fall back on the interactive sports betting solutions and services from Sbtech had up to 72 hours of serious problems in presenting their online gaming portals. In plain language that meant that Hundreds of bookmakers could not be called up. The economic damage to the sports betting providers should have been immensely. For this reason, SBTech must now form the multi -million dollar reserves in order to be able to meet possible claims for damages by customers.

The problem of the cyber attack was likely to be in its properties. According to experts, the cyber attack was a so-called ransomware attack. One Ransomware denotes a kind of extortionist software. It is a harmful program that blocks the computer and encrypt the data on it. The computer can then be activated again using a ransom payment. Without profound specialist knowledge from the IT areas, the destruction of ransomware is almost impossible, which also provides an explanation at the enormous time of the cyber attack. The IT security officer of the GRCI group Geraint Williams said:

“Companies of this size usually have the resources and security servers to resume services relatively quickly when it comes to a DDOS attack. However, if it is a ransomware attack, it may take some time to restore the systems and ensure that they are clean. ”

Giant deal is secured by the reserves

Just a short time before the cyber attack, Sbtech had negotiated a gigantic deal, which now has serious consequences for the online gambling service provider through the attack. Because in order not to endanger this, Sbtech has to in consultation with US Securities Exchange Commission (sec) Remove $ 30 million. $ 10 million are in cash to provide the remaining $ 20 million in plants for possible claims for damages.

The main print for this measure comes from the Diamond Eagle Acquisition Corporation (DEAC). The Deac sits on the other side of the table at the gigantic deal, in the course of which the investment company had already announced at the end of last year, in the near future Sbtech to unite with the “Draftkings” betting platform already under their roof. The $ 600 million fusion is intended to create a gambling giant, which is ultimately to find its way to the stock exchange. The final decision on the takeover of SbTech should originally make Deac shareholders at a meeting on April 9th. Due to the recent events, the investor assembly was moved to April 23.

Was ist is die Diamond Eagle Acquisition Corporation (DEAC)? ”The Diamond Eagle Acquisition Corporation, or Deac for short, is an investment company that was only founded in 2019 and has its headquarters in Los Angeles in California in the United States of America. Deac is a so-called blank checks company. Was founded to carry out a merger, a capital exchange, acquisition of assets, a share purchase, a reorganization or a similar company merging with one or more companies. The company is not working on business and does not achieve any income. ”

If one also believes the latest reports of different media, there is an additional request from the Deac of SBTECH of another $ 70 million as a reserve in the room, should be foreseeable that the planned $ 30 million for the damage caused by the cyber attack is not sufficient. The requirement should be a further condition for the planned takeover. Should the consequences of the attack even the Exceed $ 100 million, the Deac already announced that the lack of Sbtech’s own owners.