General Bytes Reimburses Customers After Bitcoin ATM Hack

Mar. 28, 2023
General Bytes Reimburses Customers After Bitcoin ATM Hack

General Bytes, a maker of Bitcoin ATMs, has announced that it will compensate its cloud-based clients who lost money in a security breach that compromised their hot wallets.

On March 17 and 18, a cybercriminal successfully breached security protocols, acquiring confidential data such as passwords, private keys, and funds from hot wallets by remotely infiltrating General Bytes’ ATM terminals with a Java application.

Following the security breach, a minimum of 56 Bitcoins, with a market value exceeding $1.5 million, and 21.82 Ether, estimated at around $37,000 based on current rates, have been reported as stolen.

In response to the security incident, General Bytes acted quickly to rectify the situation, taking necessary steps to prevent further unauthorized access and protect their customers. The ATM manufacturer has since decided to reimburse cloud-hosted customers who suffered losses due to the breach.

In a statement, General Bytes emphasized its commitment to customer protection:

We have taken immediate steps to prevent further unauthorized access to our systems and are working tirelessly to protect our customers.

Improved Security Measures And Migration To Self-Hosted Servers

In the wake of the cyberattack, General Bytes has performed an extensive evaluation of the damage and is diligently working to bolster security protocols to prevent comparable breaches from occurring in the future.

In addition to compensating affected customers, the company encourages all clients to transition to a self-hosted server installation. This change allows customers to secure their server platform effectively using VPN technology.

“We are investing heavily in additional human resources to assist our clients in migrating their existing infrastructure to a self-hosted server installation,” said General Bytes.

The ATM producer clarified that the protective nature of VPN technology was responsible for keeping most ATM operators safe. These operators used self-hosted server installations, which remained unaffected by the breach.

General Bytes alerted customers to the hacker’s activities through a patch release bulletin on March 18. Consequently, the company temporarily suspended its cloud services to address the security breach.

As a Prague-based firm, General Bytes takes the security of its customers’ funds and data very seriously. The firm has distributed over 15,000 Bitcoin ATMs to customers worldwide. These ATMs are in a global network of 149 countries, reflecting the company’s extensive reach and market presence.

Related Reading | Report: Chinese Banks Show Interest In Hong Kong Crypto Companies

Despite the recent security incident, General Bytes remains dedicated to serving its customers with integrity and professionalism. The company also apologized for any inconvenience caused by the breach.

Kashif is a crypto-journalist with over 4 years of experience in the Cryptoverse. He began his career as a software engineer, but his curiosity towards decentralized technology lured him into the labyrinth of crypto, where he discovered a passion for reporting the latest news and developments in the field.