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Recent data hacks could endanger Bitcoin in the millions

June 4, 2020

Hackers have received more than 5,000 email addresses and phone numbers from Coinsquare, a Canadian cryptocurrency exchange company. Now they are reportedly hoping to use the data for SIM swap attacks.

One of the suspected hackers spoke to VICE motherboard on June 2 and said that the collective originally intended to sell the information, but realized that “they could make more money by exchanging SIM accounts”.

Cole Diamond, CEO of Coinsquare, told Cointelegraph that the theft was caused by third parties and not by the exchange itself. “The Coinsquare systems were never violated”said. “As VICE was told, this was a theft of data from a third-party CRM system. It happened about 18 months ago. So the hackers didn’t steal anything. There is no hacker.”

Recent data hacks could endanger Bitcoin in the millionsRecent data hacks could endanger Bitcoin in the millions

Although the hackers haven’t stolen the data, they should have it now.

The mode of the SIM exchange

When exchanging SIMs, a hacker hijacks the target’s cell phone number and can request a password reset for each website that uses the victim’s phone for two-factor authentication.

Such a maneuver is often used to steal cryptocurrencies and is a risk to Bitcoin (BTC), Ethereum (ETH) and other cryptocurrencies stored on custody exchanges.

The VICE motherboard confirms that the information received includes phone numbers and physical addresses. It also includes data on how much each user deposited into their account in the first six monthsand the user’s rating “High Value Customer” within the Coinsquare platform.

The hack occurred due to the theft of information from an employee

Stacey Hoisak, General Counsel of Coinsquare, responded to the attack on the VICE motherboard and said that it was produced in 2019. He continued:

“The data was obtained as a result of the theft of the information contained in a customer relationship database by employees who were used to visit it.”

“The data was obtained as a result of the theft of the information contained in a customer relationship database by employees who were used to visit it.”

In 2019, the Cryptocurrency Exchange partnered with U.S.-based crypto payment startup Flexa to bring digital currency payments to Canada.

This article has been updated with comments from the Coinsquare CEO.