Byte Federal Suffers a Major Data Breach Exposing Data of Up to 58,000 Customers

Byte Federal, one of the biggest Bitcoin ATM operators in the United States, suffered a major data breach that potentially affected 58,000 customers.

Byte Federal, a major operator of Bitcoin ATMs in the United States, has disclosed a significant data breach that may have affected up to 58,000 customers.

The startup, which is one of the biggest names in the crypto ATM industry, said it discovered the attack on November 18, more than 30 days after it occurred on September 30. It was caused by a bad actor exploiting a vulnerability in software provided by a third party.

After detecting the incident, Byte Federal immediately shut down its platform and assured customers that no user assets or funds had been compromised.

However, the company said the hacker managed to attempt accessing the personal information of as many as 58,000 customers, including 111 Maine residents.

The potentially exposed data included names, dates of birth, addresses, phone numbers, email addresses, government-issued IDs, social security numbers, transaction activity and photographs of users.

Byte Federal said it has no evidence that any of its customers’ personal information was actually compromised or misused in any manner.

“To the best of its knowledge, there has been no unauthorized use or access of customers’ personally identifiable information in connection with this incident,” the company said.

Following the breach, Byte Federal performed a hard reset on all customer accounts, sending a notice of the incident. The platform also updated its internal passwords, password management system, tokens and keys to prevent any further unauthorized access.

“With the assistance of an independent cybersecurity team, we are conducting a forensic investigation to determine the cause and the scope of the incident,” Byte Federal said, adding that a legal investigation is ongoing.

The ATM firm also urged customers to reset their login credentials and said they may be asked to verify their personal data and confirm their identities for their protection.

The startup, which is funded by Clear Vision Capital, operates 4.3% of Bitcoin ATMs in the US, according to data from Coin ATM Radar. The largest share is held by Bitcoin Depot, which has at least 8,100 crypto exchange machines.