Bankrupt Bitcoin ATM Firm Coin Cloud Suffers Data Breach: 300,000 Customers’ Sensitive Info Stolen

The crypto world is facing a new security challenge as Coin Cloud, a prominent Bitcoin ATM operator, recently became the target of a significant data breach.

This incident comes at a challenging time for the company, which filed for bankruptcy earlier this year amid the crypto market downturn and the fallout from the FTX collapse.

300,000 Customers’ Personal Data Compromised

According to a revelation by vx-underground, a cybersecurity expert, an unknown hacking group claims to have obtained sensitive customer data from Coin Cloud’s systems.

This alarming development exposes the vulnerabilities even in seemingly secure financial technology operations and raises questions about the users’ personal information safety.

The scope of this breach is extensive, with reports indicating that the hackers accessed the personal data of about 300,000 customers. This data includes sensitive information like Social Security numbers (SSN), names, occupations, addresses, phone numbers, dates of birth, and other personal information, according to crypto news outlet The Block.

The hacking group also claims to have procured around 70,000 customer selfies, adding a layer of personal intrusion to the breach.

Vx-underground told The Block that this information was shared in private channels, and there’s a looming threat of it being posted online. Notably, including personal identifying information and customer selfies makes this breach particularly concerning, as it could lead to identity theft and other forms of fraud.

Coin Cloud’s Bankruptcy And Financial Woes

Coin Cloud’s vulnerability to such a cyberattack is perhaps underscored by its recent financial struggles. In January, the company, which operated over 4,000 Bitcoin ATMs in the US and Brazil, filed for Chapter 11 Bankruptcy.

This move followed significant financial losses triggered by the broader crypto winter and the impacts of the aftermath of the FTX implosion.

Reports suggest that Coin Cloud owes its creditors upwards of $50 million, far exceeding its declared assets. This financial imbalance ultimately drove the company to seek bankruptcy protection, signaling deeper troubles within the firm.

In its bankruptcy documentation, the Bitcoin ATM firm Coin Cloud detailed its outstanding debts, revealing that its most significant was over $100 million to Genesis Global Trading, a subsidiary of Digital Currency Group. The company’s second-largest debt, roughly $8.5 million, is owed to Cole Kepro.

Featured image from Unsplash, Chart from TradingView

Source link

Like it? Share with your friends!