An anonymous hacker group has claimed to have compromised the personal information of approximately 300,000 customers of the Bitcoin ATM company Coin Cloud. The cybersecurity account Vx-underground, known for its pseudonymous activity, revealed the breach on X (formerly Twitter) with a post indicating that the hackers had exfiltrated data including 70,000 customer selfies and 300,000 customers’ personally identifiable information (PII), which encompasses sensitive details such as Social Security Numbers, Date of Birth, First Name, Last Name, email address, and Telephone Number.
The hacker group also asserted that they have obtained additional personal details such as occupations, physical addresses, and other sensitive information from Coin Cloud. Notably, the hackers claimed to have accessed the source code for the company’s back end. Coin Cloud, at the time of the disclosure, had not issued an official statement in response to the security breach.
When contacted for further comments, neither Coin Cloud nor Vx-underground immediately responded to Cointelegraph’s inquiries.
The breach comes at a challenging time for Coin Cloud, as the company had recently filed for bankruptcy earlier in the year. On February 8, Coin Cloud announced its decision to file for Chapter 11 reorganization in a United States bankruptcy court. According to the company’s CEO and president, Chris McAlary, the move was aimed at reworking their debt and safeguarding the interests of their creditors. The bankruptcy filing on February 7 reported that the company had liabilities between $100 million and $500 million, with assets ranging between $50 million and $100 million.
The security breach and the subsequent disclosure of sensitive customer information raise concerns about the privacy and security practices of companies operating in the cryptocurrency space. The incident underscores the need for heightened vigilance and robust security measures to protect the personal data of customers.
It is imperative for companies operating in the cryptocurrency and blockchain space to prioritize the implementation of comprehensive security protocols, conduct regular security audits, and invest in robust cybersecurity measures to deter and mitigate the impact of potential security breaches.
As the investigation into the security breach unfolds, customers and stakeholders are advised to remain vigilant and take proactive steps to protect their personal information from potential misuse. Meanwhile, the cryptocurrency community and regulatory authorities may need to closely monitor the situation and assess the broader implications of the security breach on the industry.
The security breach serves as a stark reminder of the evolving threat landscape in the digital economy and underscores the critical importance of proactive security strategies to safeguard the personal data and assets of customers in the cryptocurrency ecosystem. It also highlights the need for enhanced collaboration between industry stakeholders, cybersecurity experts, and regulatory authorities to address the increasing security challenges facing the cryptocurrency and blockchain sector.