Brazilian cryptocurrency investment platform Atlas Quantum announced it suffered a data breach last Sunday. While no customer funds were lost during the attack, the hackers laid bare the personal details of their customers.
Atlas Quantum confirmed the incident on August 26, 2018, in a Facebook message and said they were investigating the breach and would notify users as soon as they reactivate them. A statement from Quantum Founder and CEO Rodrigo Marques stated:
“We would like to point out that this wasn’t a Bitcoin theft or a violation of our accounts in the exchanges. However, our customer base was exposed. At the time of the incident, we took immediate steps to protect the database and [the] passwords and private keys are encrypted […] we are monitoring the affected accounts and working to have additional protection against fraud.”
Crypto Upheaval in Brazil
Several Bitcoin holders in Brazil have been reportedly kidnapped, and the said breach will only aggravate worries that the exposed customers could become targeted for trading Bitcoin. The leaked user data that was also posted on Pastebin comprises at least 24% of the addresses in the company’s database.
Data breach index site Have I Been Pwned tweeted:
New breach: The Atlas Quantum cryptocurrency investment platform had 261k names, phone numbers, email addresses and account balances exposed. 24% were already in @haveibeenpwned. Read more: https://t.co/MKqKLF7WvP
— Have I Been Pwned (@haveibeenpwned) August 27, 2018
Atlas is a popular but controversial Brazilian Arbitrage investment platform that allows users to add Bitcoin via its main product, the Atlas Quantum to their accounts to trade on various cryptocurrency trading platforms allowing them to make returns based on BTC’s price fluctuations and exchange rate differences. The platform manages assets worth over $38 million. A simulator on their website claims that the return on investing $1000 for 15 days is 2% and 43% in one year.
For cryptocurrency enthusiasts, Atlas’ “arbitrage bot” brings memories of Bitconnect’s “trading bot.” Bitconnect collapsed in January after losing over 90% of its value because of regulatory scrutiny, bad press and distributed denial of service (DDoS) attacks, shortly after receiving an emergency cease and desist order from security regulators on suspicion that it was a Ponzi scheme.
A statement from the platform to the local press said they were investigating whether the hack attack was an invasion or an inside job and that the leaked information did not contain important information like passwords or other details that could enable login access. This is good news for customers whose combined assets were around 5,813 Bitcoins, worth $39 million at the current market prices.