Ledger and Tezor Dismiss Rumor That Hackers Have Stolen Data from Popular Crypto Wallet Providers

Cybersecurity company “Under The Breach” has revealed that customers who have bought products using Shopify and bought items from companies such as KeepKey, Trezor, Bnktothefuture, and Ledger may have had their data leaked.

The cybersecurity company tweeted screenshots from a hacker trying to sell stolen data from KeepKey, Ledger, Trezor, and Bnktothefuture users.

The ‘Rumored’ Hack

The cybersecurity company further mentioned that the data was stolen after the hacker exploited weaknesses in the e-commerce website Shopify. The cybersecurity company posted screenshots in which the hacker advertised huge databases with information associated with an alleged 80,000 customers. This includes the customer’s name, email address, residential address, phone number, and other pieces of data.

The hacker is claimed to be the same individual who hacked the forum Ethereum.org in 2016. The hacker is now claiming to have the databases for Ledger, Trezor, and KeepKey users, including other important information. The hacker also claims to have hacked the Bnktothefuture SQL database and stole identify information from the investment platform. The databases are up for sale, but it may turn out to be false and publicity stunt.

A communications manager at Shopify said: “We investigated these claims and found no evidence to substantiate them, and no evidence of any compromise of Shopify’s system.”

Two of the four firms have taken the allegations seriously. 

Ledger made a follow-up on the matter, terming it as a rumor. The hard wallet provider claims that so far, the allegedly hacked database does not match its real database. Ledger said that it is likely that the hacker is totally lying. The company confirmed that it will be continuing its investigations on the issue.

Trezor tweeted its confirmation that there are rumors going around that its e-shop database has been attacked through a Shopify exploit. The company clarified that its e-shop doesn’t use Shopify, thus making a Shopify-related hack impossible. The firm said: “We are nonetheless investigating the situation. We’ve been also routinely purging old customer records from the database to minimize the possible impact.”

The hacker has several dubious claims and is reported to have databases for almost 20 crypto exchanges globally. Nobody can confirm whether or not the hacker truly does have these databases. So far it appears to be more hearsay.

US Law Firms Had Data Stolen and Encrypted by Hackers Demanding Crypto Ransoms

Various big companies seem to have been the victim of recent cyberattacks, which has led to the theft of a massive amount of private information from customers. Hackers have recently breached five US law firms and encrypted their data, thus forcing each firm to pay 100 Bitcoins (about $918,500 at the time of this report) to restore their access. The hacker group identified as “Maze” also has threatened to sell some stolen data in case the firms refused to pay a ransom. The hackers have developed the habit of publishing small parts of stolen data and release more and more sensitive aspects until victimized firms pay a ransom. Hackers demanding ransoms in Bitcoin have a negative impact on the public image of cryptos, making people believe that such coins are just meant for criminals. Last year was marked not only by multiple ransoms demanding cryptocurrencies but also by major cryptocurrency scams. 

Image via Shutterstock

BnkToTheFuture Taking Steps to Acquire Crypto Lender Salt Lending

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BnkToTheFuture, a global online investment platform based in Denver, on Friday, announced plans to buy Salt Lending, a crypto lending provider also based in Denver, Colorado, for an undisclosed amount. 

Launched in 2011, BnkToTheFuture has continued serving as a global online investment platform that allows qualifying investors to invest in financial innovation including fintech firms, funds, and other new alternative financial products.

On Friday, BnkToTheFuture disclosed that it has entered into a letter of intent to acquire Salt Lending, subject to signing definitive agreements and regulatory approval.

Established in 2016, Salt Lending offers crypto-backed loans that enable individual investors and businesses to collateralize their crypto assets like Bitcoin, Ether, and others for a US Dollar or stablecoin loan.

BnkToTheFuture stated that the acquisition will complement its status as a registered excluded securities business in the Cayman Islands.

“By combining a registered securities business with a registered lending business, we believe we are able to offer a regulatory-compliant lending and yield platform to users,” BnkToTheFuture CEO Simon Dixo said.

Meanwhile, Salt Lending CEO Rob Odell, also commented about the development: “Moving forward with this acquisition provides an opportunity to enhance our suite of products and advance our mission to preserve and grow your crypto wealth.”

Besides the above-mentioned plan, BnkToTheFuture also said it plans to create an option for assisting distressed lending firms (and their clients) that are unable to emerge from bankruptcy amid regulatory matters.

 The online investment platform is reportedly intending to acquire the loan book of crypto lending firm Celsius Networks, people familiar with sources have revealed the matter. Currently, BnkToTheFuture holds a 5% stake in the crypto lender.

The deal, whose terms were not disclosed, follows the struggles encountered by other related crypto lenders.

Crypto lending firms have been at the center of this year’s crypto downturn. In the market crash, several major lending firms went underwater and blamed harsh market conditions. Celsius Networks, Voyager Digital, Babel Finance, Vauld, CoinFLEX, and CoinLoan faced liquidity issues which pushed the companies off the edge.

iFinex Proposes $150 Million Share Buyback from Bitfinex Hack Victims

iFinex, the parent company of Bitfinex, has proposed to repurchase $150 million worth of its shares distributed to customers as compensation for a 2016 security breach on the Bitfinex cryptocurrency exchange, according to a Bloomberg report. The breach, which occurred in 2016, resulted in a loss of $71 million, with around 36% of Bitfinex’s total user balance, entirely denominated in Bitcoin, being stolen. Due to insufficient cash reserves at the time, Bitfinex could not refund the affected customers.

To address the financial shortfall, Bitfinex issued recovery-right-tokens (RRT) and iFinex shares to the impacted users, valuing each share at ten dollars. A total of 15 million shares were distributed, stemming from a stock exchange transaction in 2016 via the BnkToTheFuture investing platform. Affected customers received RRT BFX tokens, which were later redeemed by iFinex through BnkToTheFuture for company shares.

On September 22, iFinex communicated its buyback intentions to its shareholders through a letter. The move, motivated by the company’s “positive performance” over the recent years, aims at offering liquidity to investors holding the somewhat illiquid shares. The buyback program is set to be selective, available only to a limited number of iFinex and its subsidiaries’ directors. There is no predetermined minimum shareholding requirement to participate in the buyback, and shareholders have until October 24 to decide on the offer.

Following the share distribution, iFinex’s valuation soared to $1.7 billion post the $10 per share offering, a significant leap from its $120 million valuation in 2016. The share buyback proposal reflects a move to re-consolidate ownership amid a heightened valuation, providing an exit opportunity for the early investors who were forced to take equity as compensation.

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