Crypto Lender BlockFi Reports Clients’ Data Leak in Security Breach

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An unauthorized third party has gained access to client’s data on crypto lending platform, BlockFi, the company reported Saturday in a series of tweets. Several customer information was leaked, including names, emails and phone numbers for a “majority” of its clients.

According to the platform, the security breach occurred through one of its third-party vendors, Hubspot. It however assures that its Clients’ funds and internal system were not affected in the breach.

Investigation underway

Investigation has already been set in motion to uncover the root cause of the breach in order to prevent any further occurrence. The announcement however became necessary to make BlockFi’s clients aware before bad actors use the information negatively.

In the spirit of transparency, we wanted to make our clients aware of this incident before bad actors could use this information to their detriment. We felt time was of the essence, and we are expediently working through our investigation.

The company wrote on Twitter.

BlockFi offers a range of crypto related services including wallet and trading services, crypto loans, high-interest accounts for crypto deposits. It has had disputes with the SEC in the past concerning its high-interest accounts which the SEC claims violates the provisions of an investment act. BlockFi was fined $100 million for this and told to stop creating such accounts for Americans.

A similar hack had happened in May 2020 when a hacker SIM-Swapped an employee’s phone number to gain access to the platform. Just like this one though, funds were not affected as the attack failed.

The repeated attempts at hacking the platform however, may affect client’s confidence in BlockFi platform in the long run. It however assures that there is no cause for alarm and customers need not take any action on their part as investigations proceed.