CryptoTrader.Tax, a digital asset tax filing platform, has become the latest target of a hacker as over 1,000 traders’ customer data was compromised in a recent breach.
As reported by Coindesk, a hacker gained access to the support center account of the platform’s marketing and customer service employee. The criminal gained control of customer information including names, email addresses, payment processor profiles, and messages containing details of crypto income.
The hacker is now trying to sell this information on a dark web forum and posted some screen grabs of the breached data.
The Platform Did Not Publicize the Breach Officially
CryptoTrader.Tax is operated by Coin Ledger Inc. and offers automated digital currency tax reporting services for the trading data on the accounts of 36 cryptocurrency exchanges. It gained popularity with the increasing crackdown of Internal Revenue Services (IRS) on potential crypto tax evaders.
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Additionally, the co-founder of the platform, David Kemmerer, confirmed the breach and detailed that the data was compromised on April 7. With access to the customer support account, the perpetrator downloaded a file with 13,000 rows of information, including 1,082 unique email addresses.
Furthermore, the compromised materials include marketing communications, referral numbers, commission earnings, and revenues from CryptoTrader.Tax affiliates.
In addition to this, Kemmerer stressed that upon investigation, the security team of the platform found out that none of the passwords of the platform’s customer accounts’ were compromised. He further commented that all the affected customers had been informed about the breach and were asked to take measures to improve their account security to prevent further breaches.
Earlier this year, a similar data breach exposed customer details of popular Bitcoin lending platform Blockfi. However, the sensitive information including passwords remained safe. Also, none of the customer deposits were affected.