Coin Cloud’s Collapse: How Hackers Stole Data from 300,000 Crypto Users
Hackers have reportedly breached the systems of Coin Cloud, a bankrupt Bitcoin ATM operator, and stolen sensitive data from about 300,000 customers. According to a post by cybersecurity researcher vx-underground, the hackers claim to have accessed the source code of Coin Cloud’s backend, as well as personal information such as names, addresses, social security numbers, and selfies of the users. The hackers also say they have data from customers in the United States and Brazil.
Coin Cloud was once a leading player in the crypto ATM market, with over 4,000 machines across the two countries. However, the company filed for Chapter 11 bankruptcy in February 2023, citing financial difficulties and regulatory challenges. Despite its demise, Coin Cloud still had a large customer base and a valuable technology platform.
The hackers who claim to have compromised Coin Cloud are allegedly discussing their actions on secret channels, raising fears that they may leak or sell the stolen data. The data breach poses a serious threat to the security and privacy of the affected customers, who may be vulnerable to identity theft, fraud, and other cyberattacks.
The incident also highlights the risks and challenges facing the crypto industry, especially in terms of user data protection and system integrity. As crypto services become more mainstream and integrated into the financial system, the need for robust cybersecurity measures becomes more critical. This breach underscores the importance of implementing strong security protocols, not only for crypto operators but also for individual users.
