Home Crypto Events Security Breach: Hacker Collective Claims Massive Data Heist from Defunct Crypto ATM Firm, Coin Cloud

Security Breach: Hacker Collective Claims Massive Data Heist from Defunct Crypto ATM Firm, Coin Cloud

Coin Cloud

In a shocking turn of events, an anonymous group of hackers has purportedly executed a large-scale data breach targeting Coin Cloud, the once-prominent Bitcoin ATM company that filed for bankruptcy earlier this year. The cybercriminals claim to have infiltrated the defunct firm’s databases, absconding with personal information from approximately 300,000 users situated in the United States and Brazil.

The pseudonymous cybersecurity account, Vx-underground, broke the news on X (formerly Twitter), revealing that the hackers boast access to a trove of sensitive data. This includes 70,000 customer selfies, obtained via the ATMs’ built-in cameras, along with a wealth of personal identification information (PII). The compromised PII reportedly encompasses social security numbers, dates of birth, first and last names, email addresses, and telephone numbers.

Notably, the hackers assert that their illicit haul extends beyond the basics. The group claims to have acquired additional details such as customer occupations, physical addresses, and other intricate data from Coin Cloud’s repository. The affected user base spans across the United States and Brazil, raising concerns about the potential misuse of this extensive dataset.

Perhaps more alarming is the assertion that the hackers have successfully accessed Coin Cloud’s backend source code, a crucial component of the company’s infrastructure. This breach raises questions about the integrity of the platform’s security protocols and the potential ramifications for both former users and the broader cryptocurrency community.

As of now, Coin Cloud has not issued an official statement addressing the alleged security breach. Concerns loom over the company’s silence, leaving affected users in the dark about the extent of the compromise and the steps taken to mitigate the fallout.

Cointelegraph reached out to both Coin Cloud and Vx-underground for additional comments but has yet to receive an immediate response. The lack of communication from the affected parties adds an air of uncertainty to an already unsettling situation.

Earlier this year, Coin Cloud filed for Chapter 11 bankruptcy, a move attributed to the company’s CEO and president, Chris McAlary, as a strategic decision to reorganize debt and safeguard the interests of creditors. The bankruptcy filing indicated significant financial challenges, with liabilities ranging between $100 million and $500 million, while assets were reported to be in the range of $50 million to $100 million.

The pseudonymous cybersecurity account, Vx-underground, took to social media to announce the cyber attack, indicating that the hackers managed to exfiltrate a considerable amount of data. Among the compromised information are 70,000 customer selfies captured via ATM cameras, along with essential personal details such as Social Security Numbers, dates of birth, first and last names, email addresses, and telephone numbers.

The revelation of this cyberattack compounds the woes for Coin Cloud, as users are left grappling with the potential fallout of their compromised data. The situation underscores the vulnerability of personal information in the digital age and raises concerns about the security infrastructure of cryptocurrency-related services.

Cryptocurrency enthusiasts and industry observers are closely monitoring developments as they await a response from Coin Cloud and relevant authorities. The implications of this breach extend beyond the fate of a single company, serving as a stark reminder of the ongoing challenges faced by the broader cryptocurrency ecosystem in safeguarding user data.

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Julie J

Julie is a renowned crypto journalist with a passion for uncovering the latest trends in blockchain and cryptocurrency. With over a decade of experience, she has become a trusted voice in the industry, providing insightful analysis and in-depth reporting on groundbreaking developments. Julie's work has been featured in leading publications, solidifying her reputation as a leading expert in the field.

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