Israel’s regulated crypto broker, Bits of Gold, is investigating a cybersecurity incident. The company disclosed that unauthorized access occurred on a third-party system used for customer service and data analysis, potentially affecting certain customers’ personal information.
Customer information that may be involved
The company stated that the preliminary review indicated that the potentially accessed data may include names, ID numbers, email addresses, phone numbers, IP addresses, bank account information, and public cryptocurrency wallet addresses.
Bits of Gold stated that customer funds, crypto assets, account passwords, identity document scans, full credit card information, and CVV security codes were not affected. There is currently no indication that any potentially compromised information has been actually misused.
The event originated from a third-party system.
The company stated that this incident is part of a broader cyber incident following a breach of a software vendor, which may also affect other businesses worldwide. Local media Calcalist reported that Bits of Gold was not directly targeted, but the identity of the software vendor has not been disclosed in the related announcements.
- Customer notification date: August 16
- The company stated that it has blocked access and disconnected the relevant systems.
- The relevant regulatory authorities have been notified.
Regarding the number of affected individuals, external figures suggest approximately 200,000 people, but the company has not publicly confirmed this. Public information indicates that the total number of Bits of Gold platform customers exceeds 300,000.
Phishing risk has increased
Based on current disclosures, the more immediate short-term risk is not wallet theft, but phishing and impersonation scams. Names, phone numbers, email addresses, banking information, and public wallet addresses may be used to impersonate platforms, banks, or other financial institutions and send more deceptive communications.
Bits of Gold has reminded users not to provide passwords, verification codes, or private keys to unsolicited contacts, and not to transfer funds or digital assets due to unrequested information. The company stated that services are currently operating normally, and customers do not need to take any additional actions on their accounts at this time.
Licensing and Stablecoin Business
Bits of Gold holds Israeli Financial Services License No. 56716. The company states that it is among the first crypto businesses in the region to obtain a permanent financial services license and maintain continuous operations.
In April this year, BILS, the shekel-backed stablecoin associated with Bits of Gold, was approved for issuance and distribution. The company previously stated that BILS received approval after approximately two years in a regulatory sandbox and is backed 1:1 by shekel reserves.
Additional information: Key areas of ongoing focus include the final confirmed number of affected customers, the identity of the compromised software vendor, the actual scope of data accessed, and whether investigators have found evidence of data misuse.