The Coin Cloud Breach: What You Need to Know

Bankrupt bitcoin ATM Firm Coin Cloud has reportedly been breached by a yet unidentified hacking group.

According to reports from vx-underground, an information security researcher who first disclosed the breach over X, the threat actors claim to have exploited Coin Cloud’s database and retrieved some 70,000 customer selfies as well as personal information from over 300,000 users, which includes sets such as Social Security numbers, names, addresses, birth dates, occupations, and phone numbers.

Source Code and Severity of the Breach

Notably, the threat actors also claim to have obtained the source code for Coin Cloud’s backend system.

The breach’s severity is highlighted by the publication of redacted images purportedly showing the accessed customer data. Vx-underground says that the claims were initially shared via private, encrypted channels, with indications of the compromised database soon becoming available publicly.

Financial Troubles and Bankruptcy Filing

Coin Cloud’s susceptibility to this cybersecurity incident comes in the wake of its bankruptcy filing in February 2023. The bitcoin ATM firm, which operated roughly 4,000 bitcoin ATMs across the U.S. and Brazil, faced significant business and legal challenges, culminating in losses of $40 million within the first nine months of 2022.

These developments on the firm’s financial status were first reported by Chris McAlary, Coin Cloud’s former CEO, to the Wall Street Journal. Coin Cloud has also confirmed that it currently owes Genesis Global Holdco $116 million with plans to find new financing or sell off its bitcoin ATM business through the Chapter 11 bankruptcy filing. Genesis Global Capital is a subsidiary business of Digital Currency Group’s bankrupt lending arm. Previous reports from Bloomberg in 2022 indicate that Coin Cloud also received a $100 million unsecured loan from Genesis for its restructuring plans.

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Public Comment and Implications for the Crypto Market

At the time of writing, Coin Cloud has not issued a public comment regarding the breach. The situation remains under scrutiny, with potential implications for the broader crypto market in terms of data security and operational stability.

In recent news, Coin Cloud, a bankrupt bitcoin ATM firm, has reportedly fallen victim to a major breach. According to reports from information security researcher vx-underground, a hacking group claims to have accessed Coin Cloud’s database and extracted sensitive customer information, including 70,000 customer selfies and personal data from over 300,000 users. The severity of the breach is evident from the fact that the hackers also obtained the source code for Coin Cloud’s backend system.

This breach comes at a tumultuous time for Coin Cloud, following its bankruptcy filing earlier in the year. The firm, which operated thousands of bitcoin ATMs in the U.S. and Brazil, faced significant financial challenges, reporting losses of $40 million in 2022. The news of the breach has raised concerns about the implications for the broader crypto market, particularly in terms of data security and operational stability.

While Coin Cloud has not yet issued a public comment on the breach, the situation remains under scrutiny as the company navigates its bankruptcy proceedings. These recent events serve as a reminder of the importance of robust cybersecurity measures in the cryptocurrency industry.

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By Team