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BlockFi announces unauthorized third-party breach

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

Threee Arrows Capital Liquidated by BlockFi
Threee Arrows Capital Liquidated by BlockFi

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Crypto exchange BlockFi has announced that it recently had an unauthorized third-party breach on some of its customer data. According to the company, the third-party vendor through which the incident occurred, Hubspot, stored user data such as names, phone numbers, email addresses, and other details on their servers. As a result, these details have likely been accessed by the threat actor. BlockFi uses Hubspot for marketing and its Client Relationship Management (CRM).

The Twitter threat shared by the exchange noted that personal client details like government-issued IDs, passwords, and social security numbers, were not affected because they weren’t stored on Hubspot.

Clients’ Funds Are Safe

The exchange also assured customers that its internal systems and clients’ funds were not affected by the breach, although the exact details about the incident have not been revealed yet. The company stated that it has started an investigation into the matter to determine the full impact of the data breach and future measures for more protection.

The announcement also noted that the company wants to inform customers about the breach to enable them to stay alert in terms of their online security before threat actors take advantage of the situation.“We felt the time was of the essence, and we are expediently working through our investigation,” it shared.

BlockFi Was Recently Fined $100 Million By The SEC

BlockFi has also recommended security measures to help users protect themselves from threat actors. The firm recommended four measures, including vigilance against scammers, “allowlisting” of BlockFi address, enabling two-factor authentication, and using strong unique passwords.

This is not the first time BlockFi is facing a breach of its customer data. Last year, the company suffered another breach that impacted retail clientele while institutional clients were unaffected.

The latest development will be seen as another setback for the New Jersey-based firm that is battling a $100 million fine from the Securities and Exchange Commission (SEC). The company was fined for violating the Investment Act, 1940, through its high-yield products.

Your capital is at risk.

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