CrowdStrike Cyber Crash Sparks Concern Over Corporate Influence

On July 19, 2024, a massive computer crash caused by a CrowdStrike update led to the grounding of over 18,000 flights globally, including 1,200 in the United States. The incident, resulting from a “defect found in a single content update for Windows hosts,” as stated by CrowdStrike CEO George Kurtz, has reignited concerns about the company’s extensive influence and political connections.

CrowdStrike’s history includes significant involvement with the World Economic Forum (WEF), which named the company a “Technology Pioneer” in 2015. The company partnered with the WEF in 2020 to combat cybercrime using artificial intelligence, demonstrating its deep integration into global cybersecurity efforts.

The company’s largest shareholder, Vanguard, holds a 12.41% stake through its Vanguard Index Funds, while BlackRock has a smaller ownership. This concentration of ownership by major investment firms has raised questions about their control over vital technology companies.

CrowdStrike became a household name during the 2016 election when it was hired to investigate the Democratic National Committee (DNC) hack. The investigation attributed the hack to Russian intelligence, a conclusion supported by U.S. Intelligence and independent Congressional reports. This led to the extensive “Russia, Russia, Russia” investigation into former President Donald Trump.

In 2017, Trump questioned why the FBI wasn’t allowed to examine the DNC server directly and suggested CrowdStrike, allegedly connected to Ukraine, was brought in instead. These claims resurfaced during Trump’s phone call with Ukrainian President Volodymyr Zelenskyy, contributing to his impeachment.

The recent crash has brought these issues back into the spotlight, with critics worried about the risks of CrowdStrike’s widespread system access. “CrowdStrike had kernel access to most of the systems around the world,” said Peter Gietl of Return. “This seems very dangerous, allowing a hacker or an accident to crash systems around the world.”

Adding to the controversy, former House Speaker Nancy Pelosi reportedly holds significant investments in CrowdStrike, valued between $500,000 and $1,000,000. This connection further complicates the company’s political affiliations.

As the investigation into the crash continues, the focus remains on CrowdStrike’s influential role in cybersecurity and the potential dangers of concentrated power in the tech industry. The incident underscores the need for greater scrutiny of corporate influence and its impact on global systems.