A data breach exposed user data on Coinsquare only about a month after it became the first Canadian crypto trading platform to be registered with the Investment Industry Regulatory Organization of Canada (IIROC).
Even though customer assets may have been compromised, Coinsquare, one of Canada’s major cryptocurrency exchanges, insists they are “secure in cold storage and are not at risk.”
Consumers received emails from the exchange informing them of a “data incident,” in which a third party gained access to a database containing sensitive information. The email reads: “No passwords were exposed. We have no evidence any of this information was viewed by the bad actor.”
In this breach, “customer names, email addresses, residential addresses, phone numbers, dates of birth, device IDs, public wallet addresses, transaction history, and account balances” were leaked, the email claimed.
The official letter advises users to change their passwords, enable 2-factor authentication (2FA), and use separate credentials for multiple sites, even if the exchange has seen no evidence of malicious actors accessing the hacked information.
Coinsquare Detected Issues A Week Ago
Even though this email was sent by the exchange in the most recent days, Coinsquare detected the security problem a week ago and informed clients of it via Twitter.
After discovering the vulnerability on November 19th, Coinsquare had to temporarily shut down operations while it investigated the unusual behavior, leading to concerns about the platform’s liquidity.
However, after taking preventative precautions over the course of several days, Coinsquare was able to gradually restore operations.
The company tweeted:
“We want to reiterate that 100% of client funds are safely held in cold storage and are not used for business activities.”
Notably, After Coinsquare’s September purchase of CoinSmart, the two Canadian companies merged. CEO of CoinSmart, Justin Hartzman, said that the platform plans to build one of Canada’s largest regulated crypto asset trading platforms.
He went on to say that despite this, making the investment will provide buyers with “the torque needed to be in a good position entering the next bull run.”