Iranian Crypto Exchange Denies Data Breach

John Darbie
Photo: Finoracle.me

Iranian Cryptocurrency Exchange Bit24.cash Faces Potential Data Breach

A potential data breach has been uncovered at Bit24.cash, an Iranian cryptocurrency exchange, raising concerns about the exposure of sensitive information belonging to nearly 230,000 users, Cybernews reported on January 8.

Concerns Mount Over Exposure of Sensitive User Data at Bit24.cash

Given Iran’s restricted access to global financial markets because of sanctions, the country has increasingly turned to cryptocurrencies. In the past year alone, Iranian crypto exchanges facilitated transactions totaling almost $3bn, with the majority adhering to Know Your Customer (KYC) requirements.

Bit24.cash, a prominent over-the-counter crypto exchange in Iran supporting over 300 coins and tokens, is now under scrutiny. The KYC process, crucial for preventing criminal activities, mandates users to verify their identity by submitting official documents. Despite the confidential nature of these documents, users expect exchanges to diligently safeguard them.

Misconfigured MinIO Instance Exposes KYC Data of 230,000 Iranian Citizens

However, a misconfigured MinIO instance was discovered by Cybernews researchers, inadvertently providing access to S3 buckets containing the exchange’s KYC data. This misconfiguration exposed critical details of approximately 230,000 Iranian citizens, including written consent to regulations, passports, IDs, and credit cards. The exchange has reported that the instance has been secured and is no longer accessible.

Experts Warn of Significant Threat as KYC Data Breach Hits Crypto Exchange

Cybernews researchers emphasize the severity of compromised KYC verification data on cryptocurrency exchanges, stating that such a breach poses a significant threat. Malicious actors could exploit the exposed data for identity theft, fraudulent transactions, and phishing attacks, potentially causing substantial financial and personal harm to affected users.

Bit24.cash Denies Data Breach, Claims Accusations are Inaccurate

Hossein Amini, a security engineer at Bit24.cash, dismissed Cybernews’ claims as “inaccurate and misleading”, stating that the company found no evidence of a data breach or unauthorized access to sensitive user information.

Analyst comment

Negative news: Iranian Cryptocurrency Exchange Bit24.cash Faces Potential Data Breach and Exposes Sensitive User Data

As an analyst, the market is likely to react negatively to this news. The potential data breach and exposure of sensitive user data raises concerns about the security and trustworthiness of Bit24.cash. This could lead to a decrease in users and transactions on the exchange, as people may be hesitant to trust their personal information and funds with the platform.

Share This Article
Follow:
John Darbie is a seasoned cryptocurrency analyst and writer with over 10 years of experience in the blockchain and digital assets industry. A graduate of MIT with a degree in Computer Science and Engineering, John specializes in blockchain technology, cryptocurrency markets, and decentralized finance (DeFi). His insights have been featured in leading publications such as CoinDesk, CryptoSlate, and Bitcoin Magazine. John’s articles are renowned for their thorough research, clear explanations, and practical insights, making them a reliable source of information for readers interested in cryptocurrency. He actively follows industry trends and developments, regularly participating in blockchain conferences and webinars. With a strong reputation for expertise, authoritativeness, and trustworthiness, John Darbie continues to provide high-quality content that helps individuals and businesses navigate the evolving world of digital assets.