How Private Equity Debt Left a Leading VPN Open To Chinese Hackers

Slashdot

by BeauHD

February 20, 2026

AI-Generated Deep Dive Summary

In early 2024, a significant cybersecurity breach involving Ivanti Inc.'s Connect Secure VPN software exposed sensitive government and corporate data to Chinese hackers. The U.S. Cybersecurity and Infrastructure Security Agency (CISA) issued an emergency order directing agencies to disconnect from the compromised software after discovering it had been infiltrated by state-sponsored actors. This directive impacted a vast network of users, including major U.S. defense branches, financial institutions like Wells Fargo and Deutsche Bank, and thousands of companies. Despite Ivanti's attempt to issue a fix, CISA found that two of its internal databases—containing critical infrastructure information—had already been compromised. The incident highlights how private equity involvement in cybersecurity firms can undermine product safety. After private equity firms acquired Ivanti, they cut costs, leading to reduced investment in security measures. This decision left the VPN vulnerable to exploitation, as evidenced by multiple successful hacks targeting the software. Similar issues arose with Citrix Systems Inc., another major VPN provider, after its acquisition by private equity firms that disbanded its 70-member product security team. The breach has prompted a reevaluation of cybersecurity practices among government officials and corporate executives. Some organizations are now excluding private equity-owned VPNs from their networks and incorporating ownership structures into risk assessments for critical technologies. Laura Galante, former top cyber official at the Office of the Director of National Intelligence, emphasized the urgency by stating, "You should not be using it," referring to the compromised software. This incident underscores the broader implications of private equity involvement in cybersecurity markets. While private equity firms may prioritize short-term financial gains, such decisions can compromise long-term security and safety. The attack on Ivanti's VPN serves as a cautionary tale for organizations relying on critical security tools, highlighting the need for rigorous vetting

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Originally published on Slashdot on 2/20/2026