In short
- Bitcoin Depot revealed that hackers stole 50.9 BTC worth $3.665 million from the company’s wallets in a breach on March 23.
- Attackers gained access to IT systems and obtained account information for paying digital assets.
- Customer platforms and data were not affected, according to the company.
Bitcoin ATM provider Bitcoin Depot Inc SEC file On Wednesday, hackers stole approximately 50.9 BTC worth $3.665 million from wallets managed by the company in a security breach on March 23.
The attackers gained access to the company’s IT systems and obtained credentials for digital accounts, allowing them to transfer cryptocurrencies without permission.
Following the discovery, Bitcoin Depot said it had initiated incident response measures and contacted external cybersecurity experts to investigate the attack and protect the remaining assets. The company also notified law enforcement officials, although it did not specify which agencies are involved in the investigation.
Despite the compromise of the regular account and the loss of assets, Bitcoin Depot said that the platforms that track customer and user data were not affected by the intrusion.
Bitcoin Depot has not publicly reported the breach, as of this writing, aside from the SEC filing. Decrypt reached out to a company spokesperson for comment, but did not immediately receive a response.
The company classified the incident as significant to its operations, citing potential reputational damage as well as litigation, regulatory, and administrative costs. Bitcoin Depot recorded an initial loss estimate of $3.665 million based on the value of Bitcoin at the time of the theft.
The disclosure did not mention whether the company maintains digital asset theft insurance or how a loss would affect the operation of its Bitcoin ATMs across its entire network.
Bitcoin ATM operators have become an attractive target for cybercriminals because of the large reserves of cryptocurrency they must hold in order to control the customer. These companies face unique security challenges as they interact with crypto-currency and digital storage systems.
This marks at least the second known security incident at Bitcoin Depot, following violation of 2023 where hackers obtained personal information for 58,000 users. The company has also faced further scrutiny, which is currently underway information verification requirements for all ATM transactions as authorities increase oversight of Bitcoin ATM operations.
Shares of Bitcoin Depot (BTM) it rose 15% during the trading day to finish at a price of $ 2.74, but fell after a few hours following the disclosure of the SEC. The company’s shares have fallen 44% in the past 30 days.
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