2019 Financial Crash

In September of 2019 the Dow Industrial Average hit its highest value in history. By the end of October the Dow drops almost 6000 points after a single day drop 2164 points on October 18th. The roots of this downturn were believed to be in measures taken during the financial crisis that started in 2007. The initial crash was precipitated by the unexpected bankruptcy of a small investment bank, Ludwig and Partners. They served as a clearinghouse and ran one of the largest dark exchanges in the financial industry and had become the center of trading for large intuitions. This placed a large amount of capital tied up in accounts, and as a result of the bankruptcy their partners were unable to unwind deals or access assets starting a downward spiral that devastated the global economy.

An article written by Linda Reeves in 2022 claimed hackers caused the bankruptcy of Ludwig and Partners. She cited several confidential government sources, as well as dark net sources when describing the events. Her reputation for having access to those sources, as well as past stories gave her story credibility. The hack was a complex operation that was carried out by a group calling itself Anarchy Front whose stated goal was to “free man from corporate indentured servitude and government dominion”. They used tools developed by the Cyber Crypto Combatant Command (C4) of the United States Army for attacking enemy cyber infrastructure and financial systems. The sophistication of the attack, the fact that it was spread across many companies and insufficient auditing controls meant the attack was not detected until it was complete. The revelations in the article lead to US Congressional and EU parliamentary investigations as well as the establishment of the UN Commission on Cyber Security and Warfare that lead to the creation of the Corporate Network Authority (CNA).

2019 Financial Crash

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