A major computer crash on July 19, 2024, caused by CrowdStrike, has grounded over 18,000 flights worldwide, including 1,200 in the U.S., sparking widespread concern. The crash was attributed to a “defect found in a single content update for Windows hosts,” according to CrowdStrike CEO George Kurtz.
The incident has brought renewed scrutiny to CrowdStrike, a company already known for its deep ties with the World Economic Forum (WEF) and major investment firms like Vanguard. CrowdStrike was named a “Technology Pioneer” by the WEF in 2015 and partnered with the forum in 2020 to combat cybercrime using AI.
Vanguard, CrowdStrike’s largest shareholder, owns 12.41% of the company through its Vanguard Index Funds. BlackRock also has a smaller stake. The significant influence of these investment giants over CrowdStrike has raised concerns about the power they wield in critical sectors.
CrowdStrike first gained widespread attention during the 2016 election, when it was hired to investigate the Democratic National Committee (DNC) hack. The company concluded that Russian intelligence was responsible, a claim supported by U.S. Intelligence and independent reports. However, this investigation led to significant political turmoil, including the “Russia, Russia, Russia” investigation into former President Donald Trump.
Trump questioned why the FBI was not allowed to investigate the DNC server directly and suggested that CrowdStrike, allegedly linked to Ukraine, was brought in instead. These claims resurfaced during Trump’s call with Ukrainian President Volodymyr Zelenskyy, which played a role in his impeachment.
The recent crash has intensified these concerns, with critics questioning the safety and security implications of CrowdStrike’s widespread access to global systems. “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 owns significant shares in CrowdStrike, with investments between $500,000 and $1,000,000. This connection adds another layer of complexity to the company’s political ties.
As investigations into the crash continue, CrowdStrike’s role in cybersecurity and its influence over global systems are under intense scrutiny. The incident highlights the potential risks associated with the concentration of power in a few key tech companies and their far-reaching impact on global operations.
