Good day everyone,
I hope you are all well and had an excellent week, welcome to CryptoGod-1’s blog on all things crypto. A hacking group has allegedly stolen around 70,000 customer selfies and sensitive personal information for approximately 300,000 customers from the now bankrupt Bitcoin ATM Company known as Coin Cloud.
Coin Cloud Hacked
A hacking group which has yet to be identified has purportedly claimed responsibility for a significant security breach targeting Coin Cloud. The company was a Bitcoin ATM operator that once boasted over 4,000 machines in the U.S. and Brazil but back in February 2023 they were forced to file for bankruptcy.
The hacking group claims to have stolen 70,000 customer selfies and sensitive personal information for approximately 300,000 customers, along with the source code for Coin Cloud’s backend system. This was brought to the publics attention via a post on 'X' from cybersecurity expert vx-underground. They disclosed that the hacking group is asserting its actions in private channels.
The redacted images as part of the post are said to depict customer selfies and personal identifying information, including names, addresses, Social Security numbers, dates of birth, occupations, phone numbers, and more.
The situation is a serious one when considering the hackers claims to have stolen the entire source code of Coin Cloud’s backend system. This source code is what powers the cryptocurrency ATMs and it underlies the entire companies operations.
The hackers are sharing these claims in private channels but many are concerned that the possible leaked database may be posted online soon and all those impacted could have a major data breach of their private information. With the significant risk to affected individuals in the United States and Brazil which could see them exposed to potential identity theft and various cybercrimes, Coin Cloud has yet to provide a public comment on the reported breach. Furthermore, the theft of Coin Cloud’s source code raises concerns about the potential misuse and exploitation of the company’s proprietary technology, which could compromise the security of its users.
Coin Cloud Previous Challenges
This is not the first time Cloud Coin has faced issues around its business, but the Bitcoin ATM firm is facing new levels of problems surrounding these reports of a significant data breach. Back in February 2023 the company filed for Chapter 11 Bankruptcy and now will be faced with the compromise of sensitive customer data. This will likely only further add to the complexity of their financial troubles.
As part of their Chapter 11 bankruptcy filing to the Nevada Bankruptcy Court, Coin Cloud showed their liabilities ranged from the US$100 million to US$500 million mark. Their most substantial creditor is currently Genesis, who are owed an uncollateralized loan of US$100 million. Following them is Cole Kepro, a Nevada-based entity supplying essential arcade gaming machines for Coin Cloud’s operations, who are owed approximately US$8.5 million. Finally, there are also financial obligations of US$2.5 million to Brink’s U.S. who provided cash management and security services to the company.
Having been a prominent player in the cryptocurrency ATM industry and active since at least 2014, the company claimed to have over 1,100 ATMs as part of its pivotal time in its hyper-growth during January 2022. On their website they claimed to have expanded their network to encompass more than 5,000 ATMs handling over 40 cryptocurrencies.
Coin Cloud was ranked second in terms of worldwide services for its number of ATMs during its peak, with 4,826 machines primarily located in the United States. Like with most in the cryptocurrency industry, they faced a downturn in the second half of 2022 and things such as market dynamics, competition, and the integration of cryptocurrency services into existing ATMs have impacted their business in a negative way, leading to their Chapter 11 filing.
While the industry still faces major challenges, Coin Cloud was a notable player in the cryptocurrency ATM space and they helped to provide accessibility and adoption of cryptocurrencies by providing a widespread network of ATMs. These ATMs facilitated the purchasing and selling of various digital assets. The impact of a potential data breach on such a previous big player in the space is likely to have customers worried, and they are being urged to monitor their financial accounts closely along with implementing any potential further security measures. Some have also been advised to consider freezing their credit to protect themselves from potential identity theft as the claims of that data breach wait to be verified.
Have a great day,
Peace. CryptoGod-1.
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