Brazil Issues Security Inquiry to Major Crypto Exchanges

Brazil Issues Security Inquiry To Major Crypto Exchanges

The cryptocurrency community has always been a subject of intense debate among members of the evolving global community. In particular, regulators have been quick to question how and when to apply existing laws to a variety of different business models employed by the most popular of exchanges. More importantly, crime which occurs on the blockchain regarding cryptocurrency exchanges has been the subject of interest for officials all over the world. How will governments respond to hacking and theft scandals that occur with non-fiat funds.

Several of Brazil’s biggest exchanges have recently suffered a massive hack, with 264,000 separate user accounts having their information stolen by unknown assailants. The information associated with the hack includes info related to the account, the emails associated, as well as phone numbers of the users attached. This is a massive security breach and could theoretically lead to the loss of significant funds for many of the users who are affected by the unfortunate attack.

But the exchange is under attack from a more familiar enemy as well. According to inside sources, the exchanges are now being hit by a subpoena and security inquiry from the government of Brazil. The fourteen-question document is intended to provide the government with key elements of information related to the attack, and will likely be the first step on a long road to an official government investigation into finding the culprits responsible for the hacking and theft of information.

Brazilian Hackings

The hacking occurred just last week, with the information of over 264,000 unique user accounts were exposed. A YouTube channel called Digital Investment broke the story revealing the breadth of the security breach within the popular exchanges. The channel revealed that among the largest violations happened on the Atlas Brazilian exchange, totaling up the information of around 15,000 different users.

Atlas responded to the issue, writing on Facebook that they were aware of Saturday’s breach and that they are currently investigating the incident with the help of their security advisor. As more details come out, the exchange is likely to reveal to the public more details regarding their continued investigation. The breach is a significant one, too, though Atlas has argued that assets are protected.

Multiple Exchanges Questioned

But the federal government in Brazil does not seem to be satisfied with the Facebook responses to the massive cryptocurrency exchange hack. Documents have been issued to three of the top ten cryptocurrencies within the country of Brazil, asking for more information regarding the nature of the attack, as well as the information that may have been lost during the breach.

The three cryptocurrency exchanges were issued subpoenas, though the government has been clear that documents are not technically “official documents of justice.” Some of the relevant parties have responded to the issued document with information, while others have withheld info until further notice.

For some exchanges, a subpoena could potentially reveal regulatory problems that could lead to potential fines and the discovery of wrongdoing. For the cryptocurrency community, the issue is a case-study in hacking and in government intervention.

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2018-09-01 15:55:14

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Bitcoin Exchange Guide News Team

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