Coinsquare Hacker Reveals Plan To Steal Bitcoin

News / 03.06.2020

Someone or group stole users’ personal information from Canada-based cryptocurrency exchange and intends to use it to carry out a wave of SIM swapping attacks.

The pseudonymous hacker spoke to media outlet Vice in an online chat on June 2. Based on a report by Vice, the perpetrators said they originally had the intention of selling the data but discovered that more money would be made by SIM swapping the accounts

When it comes to SIM swapping, it has to do with cloning someone’s SIM cards to create functionally identical copies. The perpetrator will then start receiving any data such as SMS confirmations, SMS-based and two-factor authentication codes that are being sent to the original device.

The perpetrator can then use such information to log into the victim’s cryptocurrency exchange accounts, and perhaps steal Bitcoin or other cryptocurrencies.

This is not the first time hackers have used SIM swapping strategies to steal cryptocurrency. In November 2019, two individuals in Massachusetts were charged for utilizing the strategies to obtain cryptocurrency worth $550k.

Coinsquare claimed to be the most secure trading platform in Canada on its website and the hacker wants to prove them wrong. They told Vice that the aim was to embarrass the firm for its untrue claims.

The hacker was able to prove that they compromised the exchange by providing its users’ email, physical addresses, and phone numbers. Coinsquare told Vice that the data leakage was not through a hack but an ex-employee stole it and the firm discovered it about a year ago.

Upon discovery, the firm notified law enforcement and data protection authorities as well as all impacted users. However, the firm said they only realized the full extent of the breach in recent times.

Cryptocurrency exchange hacks are still common as CypherTrace reported that cryptocurrencies stolen in the first months of this year is worth $1.36 billion.

Source: Cryptopress.

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Sudarshan M is a long time crypto-enthusiast. Pulled in by bitcoin early on, it did not take long for Sudarshan to divert all of his academic attention from business studies to blockchain by doing his Masters and eventually pursuing his PhD in the subject.