Canadian Crypto Exchange Coinsquare Confirms Data Breach

Monday, 28/11/2022 | 05:03 GMT by Arnab Shome
  • User details like name, address, phone number and wallet address were compromised.
  • Passwords and held digital assets remain safe.
JP Morgan

A Canadian cryptocurrency exchange , Coinsquare has become the latest victim of a security breach that has resulted in compromised users' personal details, the platform confirmed last weekend by sending an email to its customers.

The exchange detailed that the breach exposed "customer names, email addresses, residential addresses, phone numbers, dates of birth, device IDs, public wallet addresses, transaction history, and account balances."

However, the crypto exchange reported some "unusual activity on our platform" on November 19 and underwent unscheduled maintenance. Then, the exchange did not detail if it was a security breach. It also restored full service on Friday ahead of sending emails to costumes about the security breach.

Digital Assets Are Safe

The email sent to the Coinsquare users highlighted that the security breach did not affect the passwords and held customers' digital assets.

"No passwords were exposed. We have no evidence any of this information was viewed by the bad actor," the email stated, adding: "We note that your assets have always been, and remain, secure in cold storage and are not at risk."

However, a breach of personal information can also result in more severe individual account targeting. These generally make identity theft and fraud much more accessible. A similar data breach of Australian telecom service provider Optus earlier this year prompted the country's financial market watchdog to warn financial brokers of the rising risks of identity theft.

Moreover, the Canadian exchange cautioned the users to change their passwords and enable two-factor authentication (2FA) to ensure safety.

Coinsquare touts itself to be "Canada's trusted platform to securely buy, sell and trade Bitcoin, Ethereum, and more" and received registration from the Investment Industry Regulatory Organization of Canada (IIROC) a month before.

The security incident with the exchange happened when the crypto industry was reeling from the effects of the FTX collapse. The initial "unscheduled maintenance" of Coinsquare raised speculation of possible liquidity issues. However, the confirmation of the security breach ruled out those concerns.

Earlier this month, now-collapsed cryptocurrency platform FTX was hacked, resulting in the theft of at least $1 billion worth of cryptocurrencies. The exchange and its other more than 130 affiliates have now filed for bankruptcy protection in the United States.

A Canadian cryptocurrency exchange , Coinsquare has become the latest victim of a security breach that has resulted in compromised users' personal details, the platform confirmed last weekend by sending an email to its customers.

The exchange detailed that the breach exposed "customer names, email addresses, residential addresses, phone numbers, dates of birth, device IDs, public wallet addresses, transaction history, and account balances."

However, the crypto exchange reported some "unusual activity on our platform" on November 19 and underwent unscheduled maintenance. Then, the exchange did not detail if it was a security breach. It also restored full service on Friday ahead of sending emails to costumes about the security breach.

Digital Assets Are Safe

The email sent to the Coinsquare users highlighted that the security breach did not affect the passwords and held customers' digital assets.

"No passwords were exposed. We have no evidence any of this information was viewed by the bad actor," the email stated, adding: "We note that your assets have always been, and remain, secure in cold storage and are not at risk."

However, a breach of personal information can also result in more severe individual account targeting. These generally make identity theft and fraud much more accessible. A similar data breach of Australian telecom service provider Optus earlier this year prompted the country's financial market watchdog to warn financial brokers of the rising risks of identity theft.

Moreover, the Canadian exchange cautioned the users to change their passwords and enable two-factor authentication (2FA) to ensure safety.

Coinsquare touts itself to be "Canada's trusted platform to securely buy, sell and trade Bitcoin, Ethereum, and more" and received registration from the Investment Industry Regulatory Organization of Canada (IIROC) a month before.

The security incident with the exchange happened when the crypto industry was reeling from the effects of the FTX collapse. The initial "unscheduled maintenance" of Coinsquare raised speculation of possible liquidity issues. However, the confirmation of the security breach ruled out those concerns.

Earlier this month, now-collapsed cryptocurrency platform FTX was hacked, resulting in the theft of at least $1 billion worth of cryptocurrencies. The exchange and its other more than 130 affiliates have now filed for bankruptcy protection in the United States.

About the Author: Arnab Shome
Arnab Shome
  • 6639 Articles
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6639 Articles
  • 100 Followers

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