Instructure strikes deal with hackers who breached it twice
techcrunch.com May 12, 2026

Instructure strikes deal with hackers who breached it twice

AI-summarised brief · reviewed before publication

Instructure, the maker of the Canvas school information portal, has reached an agreement with the hackers who breached its systems twice, stealing data from 275 million people. The hackers, known as ShinyHunters, compromised Canvas, which is used by nearly 9,000 schools, and disrupted thousands of schools. Instructure said the hackers provided evidence that the stolen data was destroyed and that customers would not be extorted. The company acknowledged uncertainty in negotiating with cybercriminals, but noted that customers should not have to engage with the hackers. The financial terms of the agreement were not disclosed, and it is unclear why Instructure paid the hackers.

💡 Why It Matters

  • · The deal sets a troubling precedent for companies negotiating with cybercriminals, undermining government warnings against paying ransoms.
  • · Instructure's decision to pay the hackers may encourage similar attacks on other education technology companies.