Organized crime groups and sophisticated hackers are increasingly targeting crypto platforms. These groups and hackers steal billions of dollars and launder funds through various crypto services to conceal the money trail. As a result, investment platform security breaches can lead to substantial financial losses for investors. In turn, investment companies can face significant lawsuits for omitting important information about platform security or failing to protect customer data.
At Silver Law Group, our knowledgeable attorneys understand the role of crypto security breaches in securities fraud claims. We represent investors across the country who have lost money due to various crypto-related investment schemes, and have also acted as counsel to SEC receivers in Ponzi scheme cases involving virtual currencies. Our firm works on a contingency basis, meaning you don’t pay us anything unless we get your money back.
Security breaches facilitate cryptocurrency fraud by exposing personal information and user credentials. These breaches can enable crypto fraud in several different ways.
Hackers can use information exposed in a data breach to craft convincing phishing attacks. By impersonating a cryptocurrency exchange or another trusted entity, attackers can deceive victims into revealing sensitive credentials such as private keys or seed phrases.
A data breach can disclose the personal information—such as a name, address, or partial Social Security number—needed for an attacker to convince a mobile carrier to port a victim’s phone number to a new SIM card. This allows the attacker to intercept one-time security codes and bypass SMS-based two-factor authentication (2FA) to take over crypto exchange accounts.
An attacker can use information from a breach to target users with malware, which can monitor a device’s clipboard. Malware can copy and automatically replace a cryptocurrency wallet address with the attacker’s address to divert funds during a transaction. Similarly, malicious code embedded in applications can redirect funds to a hacker’s wallet if a transaction takes place.
Attackers can also target a centralized or decentralized cryptocurrency service directly by exploiting security flaws, such as bugs, in a smart contract. Another method for stealing user assets is to compromise a service’s private keys.
Many users mistakenly believe that blockchain technology and 2FA are foolproof security measures. This can mean they often overlook other security strategies. Attackers can exploit this misplaced trust by targeting the more vulnerable aspects of a security system.
At Silver Law Group, our experienced team can help victims of securities fraud pursue legal claims against the platforms responsible for crypto security failures.
If you’ve lost money to a crypto security breach, you may be able to recover your losses and other damages by joining a securities fraud class action lawsuit.
The team at Silver Law Group investigates cases involving security breaches and represents clients who’ve lost money as a result. This can include pursuing securities fraud class action claims against crypto exchanges compromised by hackers who failed to implement adequate security measures to prevent a breach.
Our team also works with cases involving unauthorized account intrusion on various cryptocurrency platforms, and we aim to hold major exchanges accountable for their failure to protect investor assets.
Crypto security breaches in securities fraud claims are often the result of misrepresentations or omissions by investment companies regarding the security of their platforms. At Silver Law Group, our attorneys have extensive experience spearheading litigation against companies that don’t adequately safeguard their platforms.
Our firm works on a contingency basis, meaning that you don’t pay any legal fees unless we successfully recover your losses in a settlement or court award. Contact a member of our team today to request your free case consultation.
