Cybersecurity Breach Hits Coin Cloud Bitcoin ATM Operator
The security of the cryptocurrency world faces a new challenge with the recent data breach at Coin Cloud, a major Bitcoin ATM operator. The company’s plight has been exacerbated by its recent filing for bankruptcy, amidst the broader crypto market downturn and the aftermath of the FTX collapse.
300,000 Customers’ Personal Data Compromised
According to cybersecurity expert vx-underground, an unknown hacking group has claimed to have obtained sensitive customer data from Coin Cloud’s systems. This alarming development has exposed vulnerabilities in apparently secure financial technology operations and raised questions about the safety of users’ personal information (Source).
“An unknown Threat Actor(s) claim to have compromised Coin Cloud. They allege to have exfiltrated 70,000 customer selfies (via ATM cameras), and 300,000 customer PII which includes Social Security Number, Date of Birth, First Name, Last Name, e-mail address, Telephone Number…” – vx-underground
The scope of this breach is extensive, with reports indicating that the hackers accessed the personal data of about 300,000 customers, including sensitive information such as Social Security numbers, names, occupations, addresses, phone numbers, dates of birth, and other personal data. Furthermore, the hacking group claims to have procured around 70,000 customer selfies, adding a layer of personal intrusion to the breach (Source).
Coin Cloud’s Bankruptcy And Financial Woes
The susceptibility of Coin Cloud to such a cyberattack is emphasized by its recent financial struggles. Earlier this year, the company, which operated over 4,000 Bitcoin ATMs in the US and Brazil, filed for Chapter 11 Bankruptcy, citing significant financial losses due to the broader crypto winter and the impacts of the FTX implosion (Source).
Additionally, Coin Cloud detailed its outstanding debts in its bankruptcy documentation, with the company owing its most significant debt of over $100 million to Genesis Global Trading, a subsidiary of Digital Currency Group. Its second-largest debt, roughly $8.5 million, is owed to Cole Kepro (Source).
This breach and Coin Cloud’s financial woes highlight the ongoing challenges and risks in the cryptocurrency space, particularly in terms of cybersecurity and financial resilience.
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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