In a recent update, an unknown hacking group claimed to have stolen sensitive customers’ data from the now-defunct Bitcoin ATM company Coin Cloud. The revelation of stolen customer data was shared on X by an acccount titled ‘Vx-underground.’
In the X post, the hackers gained unauthorized access to 300,000 customers’ accounts to obtain personal data, including physical addresses and social security numbers.
Anonymous Hackers Claim to Steal Coin Cloud Customers Data
During the hacking incident, the bad actors obtained 70000 customers’ selfies commonly used to verify transactions and other confidential data. At that time, the Coin Cloud website depicts that the company had installed around 4000 Bitcoin ATMs in the US and Brazil.
This implies that Coin Cloud has gained a substantial customer base in Brazil and the US. The report demonstrated that the hacking incident affected Coin Cloud customers in the two regions.
Unknown to many, the hackers claimed to have obtained a source code on the company’s back-end system. A code source refers to a report in a programming language formulated by a programmer to give instructions to the user.
In the post, the Vx-underground team confessed that the anonymous hackers disclosed the incident on a private channel. The hacker threatens to share the stolen database on online platforms.
Hackers Threats to Disclose Coin Cloud Database Online
News concerning the hacking incident at Coin Cloud has ignited a heated debate on the X platform. In the X thread, some users blamed the bankrupt Bitcoin ATM providers for exposing the customers to theft and other cyber-related crimes.
Some of the X users expressed concerns that the hackers were using company tools and data without the knowledge of Coin Cloud could lead to data privacy concerns. The Coin Cloud hacking incident was discovered when the Bitcoin ATM providers grappled to exit bankruptcy.
For the last two years, Coin Cloud has failed to generate substantial revenue to meet the operation cost. This exposed the business to accumulate debts and registered low yields. In February, the Bitcoin ATM provider filed for Chapter 11 of the Bankruptcy Protection at court in Las Vegas.
Coin Cloud Files For Chapter 11 of Bankruptcy Protection
At that time, Coin Cloud chief executive Chris McAlary revealed that the restructuring plans aimed at supporting the firm in exploring ways to settle the debts and safeguard the interest of the key stakeholders.
The CEO believes the restructuring plan will support the company to restore its financial position and emerge stronger. The court filing demonstrated that Coin Cloud liabilities ranged between $100 million to $500 million.
The report demonstrated that Coin Cloud owed Genesis Global Capital around $100 million. Before filing for Chapter 11 of bankruptcy protection, the bankrupt crypto ATM provider requested that Genesis support its restructuring plans.