Threat Actors Claim Responsibility Over Coin Cloud Breach

Threat Actors Claim Responsibility Over Coin Cloud Breach

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.

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.

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.

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.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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