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Bits of Gold Reports Data Breach Affecting 200,000 Customers

At the Israeli broker, names, ID numbers, and wallet addresses were leaked through an external data service. Funds and private keys were not affected, but pressure on crypto security is rising.

By Mike Hesp
• 2 min read
Bits of Gold Reports Data Breach Affecting 200,000 Customers

Key Takeaways

  • Bits of Gold confirmed that hackers stole personal data from about 200,000 customers through a third-party data analytics provider.
  • According to the company, funds, private keys, passwords, CVV codes, and scanned identity documents were not exposed.
  • The company brought in a cyber incident team and blocked access after discovering the breach.

Cryptocurrency broker Bits of Gold has confirmed that hackers stole personal data from about 200,000 customers. According to the company, funds, private keys, and passwords were not affected, but this is still one of the bigger data breaches at a crypto company in Israel this year.

What Was Stolen

According to Bits of Gold, the attack hit a third-party data analytics provider, after which attackers gained access to names, national ID numbers, email addresses, phone numbers, IP addresses, bank account details, and public wallet addresses. The company said it blocked access after discovering the breach and disconnected the system from the information sources.

Bits of Gold stressed that no funds, private keys, CVV codes, or scanned identity documents were exposed. The company also said its initial findings point to a broader global attack that hit multiple companies at the same time. The broker has brought in a specialized cyber incident team for further investigation.

More Pressure on Crypto Security

The incident comes at a time when the crypto sector is dealing with several more data breaches. Earlier this week, SafePal said data from nearly 40,000 users was stolen after a breach at an external vendor, while Trezor said on August 13 that personal data from nearly 14,000 customers was exposed through fulfillment partner ShipMonk.

For European crypto users, this matters because many exchanges and brokers work with the same kinds of outside service providers for analytics, logistics, or customer verification. Those chains do not automatically increase the risk to funds, but they do show how vulnerable customer data can be when a supplier is hit.

Israeli Broker Under the Microscope

Bits of Gold was founded in 2013 and was the first crypto company in Israel with a permanent Financial Services Provider license. The company says it has more than 250,000 customers and holds SOC 2 Type 2 certification. In a message to customers, the company also warned that it will never ask for passwords, verification codes, private keys, or fund transfers.

The context is especially sensitive because Israel has been a frequent target of cyberattacks in recent years. That makes a data breach at a major local broker not just an internal security issue, but also a sign that players in the crypto market need to keep a close eye on their dependence on outside systems.

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