Swiss Cryptocurrency Service Exposes 5,411 Customer Records
A Swiss Bitcoin service called Pocket Bitcoin has revealed that it was breached, exposing data belonging to 5,411 customers. According to the company, 291 of those affected had their Bitcoin addresses included in the breach, along with copies of identity documents and evidence on the source of funds.
This combination of information is particularly problematic because a name next to a Bitcoin address cannot be separated once it's linked to the blockchain. The coins themselves are not affected, but the incident highlights the risks of linking personal data to cryptocurrency transactions.
Pocket Bitcoin holds itself out as a non-custodial service, meaning that it does not hold private keys and therefore cannot dispose of customers' coins after payout. However, the breach suggests that this may not be enough to protect against data breaches.