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The exposure of personal data affected 58K people; however, no cash was compromised.
- Byte Federal takes action through account resets and security updates.
Byte Federal, the United States’ major Bitcoin ATM operator, revealed that a data breach affected around 58,000 users. According to a filing with the Maine Attorney General’s Office, it happened on September 30, but the breach was only identified on November 18. While some sensitive customer data including full names, dates of birth, contact numbers, government-issued IDs, and social security numbers might have been exposed, Byte Federal assured that no user funds or assets were compromised.
The breach brings growing safety concerns in the cryptocurrency ATM industry with further regulatory pressures for association with illicit activities. Its involvement with crypto ATMs has attracted alarm from countries like the UK, Australia, and Germany. And so many more such enforcement actions are already underway.
Byte Federal Implements Immediate Security Measures
In the aftermath of the breach, Byte Federal took swift action to minimize the loss of data. This entails all the customer accounts being reset, internal passwords and systems on the password management have been reset and revised, network security tokens and keys have been checked for validity. Affected users were also notified, and a statement in regard to the incident was given in a public statement. Users are encouraged to change their login information to ensure security.
The breach contained personal data, though Byte Federal asserts that no user funds or assets were affected. It remains committed to upgrading its security protocols to avoid such events in the future.
Another prominent Bitcoin ATM operator is under a trademark infringement claim by Byte Federal. This company states that Bitcoin Depot’s brand is causing a breach of its trademark rights and is just another complex aspect that the company is going through right now.
Despite the breach and attendant lawsuits, Bitcoin, Byte Federal’s main asset, has recorded slight gains, trading recently at $100,493. If the upward momentum continues, Bitcoin could soon hit fresh all-time highs.
