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Crypto Exchange Liquid Says User Data Possibly Exposed in Security Breach

The exchange said customer funds are safe.

Nov 18, 2020 at 10:13 a.m. UTC
Updated Sep 14, 2021 at 10:32 a.m. UTC

Customers registered with the Liquid exchange may have had their data exposed to bad actors, the company said Wednesday.

  • In a notice on its website, Liquid CEO Mike Kayamori said the attack occurred on Friday, Nov. 13.
  • "A domain name hosting provider that manages one of our core domain names incorrectly transferred control of the account and domain to a malicious actor," he said.
  • The access allowed the intruders to change DNS records and then take control of "a number of internal email accounts."
  • Ultimately, they were able to "partially compromise" the exchange's infrastructure and access stored documents.
  • Kayamori said the attackers may have been able to obtain data such as users' emails, names, addresses and encrypted passwords.
  • Liquid is currently investigating whether the attacker also accessed identity documents and photos submitted for know-your-customer verification.
  • As soon as the intrusion was noticed, Liquid "intercepted and contained the attack," the CEO said.
  • It also regained control of its domain and carried out a "comprehensive review of our infrastructure."
  • "We can confirm client funds are accounted for, and remain safe and secure. MPC-based and cold storage crypto wallets are secured and were not compromised," Kayamori said.
  • He recommended users change their passwords and 2FA credentials, and be wary of possible phishing attempts to use their data.

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