Crypto Exchange Liquid Confirms Security Incident and Data Breach

Liquid, a crypto exchange regulated and licensed by the Japanese Financial Supervisory Authority (FSA), announced that it has suffered a data breach of customers during the recent security incident on 13 November.

In an official announcement, the exchange detailed that a domain name hosting provider incorrectly transferred control of the account and domain to a malicious actor, giving the actor the ability to change DNS records and in turn, take control of a number of internal email accounts. In due course, the malicious actor was able to partially compromise the company's infrastructure, and gain access to document storage.

The exchange took immediate actions to prevent a further breach and performed a review of the infrastructure to better understand the situation. Though the sensitive information, including the name, email and encrypted passwords of the users may be breached, the company confirmed that client funds are accounted for, and remain safe and secure, and storage crypto wallets are secured and were not compromised.

Mike Kayamori, CEO of Liquid said:”We have informed relevant regulatory bodies of the breach, and we will continue dialogue with them over the coming days. We will continue to review our infrastructure and take steps to bolster security with our technology partners. We do not believe there is an immediate threat to your account due to our use of strong password encryption. Nevertheless, we recommend that all Liquid customers change their password and 2FA credentials at the earliest convenience.”