Code Spaces shutters following DDoS cyberattack brings company down

Code Spaces shutters following a DDoS attack and cyberattack that leff the company unable to operate with expensive overhead and refunds to customers.

Published Mon, Jun 23 2014 1:19 PM CDT   |   Updated Tue, Nov 3 2020 12:16 PM CST

Source code hosting service Code Spaces recently suffered a massive cyberattack that started with a distributed denial-of-service (DDoS) attack. The second phase of the attack occurred when a cybercriminal compromised the company's Amazon EC2 control panel, demanding a ransom from Code Spaces before the DDoS attack ended.

Code Spaces shutters following DDoS cyberattack brings company down | TweakTown.com

Code Spaces were unable to access company private keys, and the Amazon EC2 password was changed, but the hacker was still able to begin deleting artifacts from the control panel. Trying to restore the service back to normal will be too expensive and cumbersome, so Code Spaces folded up shop.

"Code Spaces will not be able to operate beyond this point... the cost of resolving this issue to date and the expected cost of refunding customers who have been left without the service they paid for will put Code Spaces in an irreversible position both financially and in terms of ongoing credibility."

This is a rude awakening for companies that don't take cybersecurity procedures seriously - many larger companies can recover, but small and midsize-businesses and smaller organizations struggle to recover from serious data breaches.

An experienced tech journalist and marketing specialist, Michael joins TweakTown looking to cover everything from consumer electronics to enterprise cloud technology. A former Staff Writer at DailyTech, Michael is now the West Coast News Editor and will contribute news stories on a daily basis. In addition to contributing here, Michael also runs his own tech blog, AlamedaTech.com, while he looks to remain busy in the tech world.

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