General Bytes, a leading Bitcoin ATM manufacturer, has fallen victim to a cyber attack, resulting in a staggering loss of $1.5 million in digital assets. The attack occurred on Friday, dealing a severe blow to the company, which boasts over 9,000 Bitcoin ATMs in operation.
According to reports, the cyber attack led to the unauthorized access of funds from hot wallets and exchanges, theft of usernames and passwords, and disabling two-factor authentication.
In addition, the attacker received approximately $1.5 million worth of BTC and transferred nearly $40,000 in Ethereum through Uniswap.
Not only did the breach affect General Bytes’ cloud services, but it also impacted other operators’ standalone servers. The attacker used their Java application to remotely upload it via the master service interface, running it with BATM user privileges.
The company classified the breach as “highest” severity and acknowledged that none of the audits conducted since 2021 were able to detect the vulnerability that led to the breach.
Unfortunately, this attack is just one of many that have occurred in the cryptocurrency industry, where the popularity of digital assets is rapidly increasing, and the number of hacks and security breaches is also on the rise.
From high-profile attacks on major exchanges to individual investors losing their life savings, the implications of these rampant crypto hacks are far-reaching and potentially devastating.
Hackers have stolen billions of dollars worth of digital assets in recent years. Incidents leave victims reeling and questioning the security of the entire crypto ecosystem.
Despite efforts to improve security measures and safeguard against attacks, the rise of DeFi and other decentralized systems has opened up new vulnerabilities and attack vectors.
These attacks cause financial losses and erode trust in the entire crypto industry. They also raise questions about the legitimacy of digital assets as a viable investment option.
General Bytes, in particular, has recently experienced several security breaches. In August 2022, the company was the victim of a hack that resulted in the theft of deposited Bitcoins at ATMs, causing the loss of around $16,000.
In response to the latest breach, General Bytes has released a security fix and advises users to implement it immediately.
Users are urged to upgrade their servers and invalidate all passwords, API keys, and hot wallets to protect against future attacks and ensure the security of their digital assets.
None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Always conduct your research before making financial commitments, especially with third-party reviews, presales, and other opportunities.