Crypto Exchange Coinsquare Suffers from User Data Breach

Crypto Exchange Coinsquare Suffers from User Data Breach

Third parties have reportedly gained access to Coinsquare users' personal data.

Coinsquare, a Toronto-based cryptocurrency exchange established in 2014, has reportedly suffered from the data breach.

According to the tweet shared by Coinsquare on November 19th, the company has detected “unusual activity” on their platform and decided to cease all operations.

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In its Twitter thread, Coinsquare reassured that user assets are safe, stating that “100% of client funds are safely held in cold storage 1:1 against client liabilities" and "client funds are not at risk.”

After a week, on November 26th, Consquare resumed all of its operations.

However, some reports claim that, on November 25th, Coinsquare emailed its customers to inform them about a “data incident,” during which unauthorized third parties managed to access a database full of customer personal information.

In the email, the Canadian crypto exchange noted that unknown actors had access to “customer names, email addresses, residential addresses, phone numbers, dates of birth, device IDs, public wallet addresses, transaction history, and account balances.”

It is reported that the data breach is directly connected to the November 19th announcement about “unusual activity.” In the email, the Canadian crypto exchange reassured users that:

No passwords were exposed. We have no evidence any of this information was viewed by the bad actor.

It is worth noting that, in the message to its clients, Coinsquare suggested users change their passwords, enable 2-Factor Authentication (2FA) and use different credentials for different platforms.

The data breach comes just a month after Coinsquare became Canada’s first “crypto trading platform registered as an Industry Regulatory Organization of Canada (IIROC) dealer and marketplace member.”

Gile K. - Crypto Analyst

by Gile K. - Crypto Analyst, BitDegree


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