Bitcoin ATM Operator Byte Federal Hit by Data Breach, Exposing 58,000 Users

Byte Federal, a Bitcoin ATM operator based in the United States, has experienced a data breach affecting over 58,000 of its customers. The breach occurred on September 30 and was caused by a vulnerability in GitLab, a third-party software used for project management and collaboration. Hackers were able to exploit this flaw, gaining access to one of Byte Federal’s servers and compromising sensitive customer data.

The exposed information includes personal details such as names, addresses, phone numbers, government-issued IDs, Social Security numbers, transaction histories, and user photographs. Despite this significant breach, Byte Federal has confirmed that no user funds or assets were stolen. As a precaution, the company has urged affected customers to reset their login credentials and has performed a hard reset on all customer accounts.

The company is currently working with an independent cybersecurity team to investigate the cause of the incident and has stated that, as of now, there is no evidence to suggest that the leaked information has been misused.

Byte Federal operates 1,387 Bitcoin ATMs across the United States, making it the eighth largest operator in the country. The company is also involved in an ongoing trademark infringement lawsuit with Bitcoin Depot, another leading crypto ATM operator, claiming that Bitcoin Depot’s use of similar branding infringes upon its trademark rights.

This breach highlights the ongoing risks associated with cryptocurrency ATMs, which have been increasingly scrutinized by regulators in various countries, including Australia, the United Kingdom, and Germany. These regulators have raised concerns about the potential for cryptocurrency ATMs to facilitate illicit activities and have implemented measures to increase oversight and take enforcement actions against unlicensed operators.