Netcoins Cyber Incident
On September 17, 2023, Netcoins was subject to a cybersecurity incident. Netcoins’ internal control systems, designed to monitor crypto-asset withdrawals, detected suspicious activity on Netcoins’ Canadian hot wallets.
Netcoins took steps to remove the unauthorized user and reinforce the security of its network. The vulnerability was addressed by the Netcoins team within the hour after the suspicious activity was discovered.
Note: no customer funds or crypto assets were compromised.
Netcoins identified an unauthorized attempt to remove customer data during the incident, and the Netcoins team is currently working with cybersecurity experts to investigate whether this did occur.
Upon discovering this incident, Netcoins took steps to remove the unauthorized user and reinforce the security of its network. The vulnerability was addressed by the Netcoins team within the hour. Netcoins is conducting, with the assistance of third-party cybersecurity experts, a forensic investigation into the cause and scope of the incident. The investigation is ongoing and law enforcement has been notified.
As a precautionary measure, Netcoins performed a hard reset on all customer passwords, and required all users to set up new credentials to access the platform following this event. Netcoins has updated all of its internal passwords, password management system, tokens and keys for its network to prevent any further access.
This cybersecurity incident involved an unauthorized user and suspicious activity on Netcoins’ hot wallets. Netcoins took steps to remove the unauthorized user and reinforce the security of its network. This was addressed by the Netcoins team within the hour. Netcoins is conducting, with the assistance of third-party cybersecurity experts, a forensic investigation into the cause and scope of the incident. The investigation is ongoing and law enforcement has been notified.
We suggest that customers update their passwords on any websites or platforms that may have a similar one that they previously had on Netcoins. Netcoins will never ask you for personal information or passwords via email.
We also urge customers to watch out for unusual emails and messages and to confirm that any requests they may receive are from properly verified Netcoins accounts and personnel.
We have communicated to customers what we know now and what they should do.
Netcoins’ internal control systems, designed to monitor crypto-asset withdrawals, detected suspicious activity on Netcoins’ hot wallets. Netcoins took steps to remove the unauthorized user and reinforce the security of its network. The vulnerability was addressed by the Netcoins team within the hour. We continue to work to strengthen our systems to prevent these types of incidents – which have become all too common for organizations across Canada and the globe. The security of our customers and other stakeholders remains our utmost priority.
We immediately took steps to close the vulnerability, remove the unauthorized user and reinforce the security of our network. The vulnerability was addressed by the Netcoins team within the hour. We launched an investigation, notified law enforcement and engaged cyber security experts and are notifying customers and the public as soon as we confirm facts around the incident.
Our investigation has determined that no customer funds or crypto assets were compromised. The coins withdrawn by the bad actor were solely from Netcoins’ operational float stored in hot wallets, valued at an estimated CAD $343,000. Client funds are held separately and apart from Netcoins operational funds in a cold storage vault by an approved custodian. All subsequent crypto asset withdrawals have been reviewed, verified and performed manually for an added layer of security.
With third-party cyber security experts, we will continue to investigate, strengthen our systems and determine the cause and scope of the incident.
Client funds are held separately and apart from Netcoins operational funds.
Netcoins remains committed to ensuring all client cryptocurrency assets are backed 1:1 at all times and at least 80% are held in an insured cold storage vault by an approved custodian, Bitgo Trust Company. Any client cryptocurrency asset that is not held in a cold storage vault is held in hot wallets within Fireblocks and is insured against loss or theft.
We regularly publish our proof of reserves report. Netcoins Q2 2023 proof of reserves can be found here on our website.
Netcoins has two domains - netcoins.com and gonetcoins.com
Netcoins verified email accounts are:
In Canada
In the United States
Netcoins will never ask you to verify personal information over email, social media accounts or text messages.
