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Israel’s Bits of Gold Suffers Data Breach Affecting 200,000 Customers

Israel’s Bits of Gold Suffers Data Breach Affecting 200,000 Customers

Customer identity and banking information were exposed after a hacker accessed a third-party analytics system.

Written by Rahul Dhingra, Edited by Rohan Pal | Updated: 17 August 2026 18:50 IST

Israel’s Bits of Gold Suffers Data Breach Affecting 200,000 Customers

Photo Credit: Unsplash/Kevin Horvat

Bits of Gold is investigating how customer information was accessed through its analytics system

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Highlights

Hackers accessed data through a third-party analytics system
Bits of Gold says customer funds and private keys are safe
Users were warned against sharing passwords and verification codes

Bits of Gold, a cryptocurrency brokerage service, revealed that about 200,000 users' personal information has been hacked by cybercriminals, as stated by the firm. Bits of Gold is an Israeli cryptocurrency brokerage firm based in Tel Aviv. They disclosed the data breach incident on Sunday, stating that one hacker managed to gain entry into a third-party data analytics system, thereby getting access to the customers' names, national IDs, email addresses, phone numbers, IP addresses, bank details, and public wallet addresses. Bits of Gold emphasised that no funds, private keys, passwords, CVV codes, or scanned ID documents were exposed.

Brokerage Warns Customers About Phishing and Social Engineering Risks

The brokerage firm claimed that their early conclusions showed that the hacking attack was part of a wider global attack where other firms were also attacked at the same time. No information about the nature of the data leaked was available as of now, but usually, crypto brokerage companies have to store information such as government ID proof, proof of address, etc., due to KYC rules. Cold wallets may safeguard digital currencies, but not customers' identity documents stored on servers.

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From past experiences, such data breaches have been used in phishing, SIM swapping, and other forms of social engineering attacks. This shows that the threat goes much beyond the platform itself. Bits of Gold added in their statement, “Our security team has begun a comprehensive investigation of the incident, with the assistance of a company specializing in cyber incident investigation and response [...] It is important to emphasise: your digital assets and funds are safe and were not involved in the incident.”

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However, the key immediate danger is that of social engineering and not the theft of customers' money via the said attack. Names, phone numbers, emails, bank details, and public wallet addresses may be used by the attackers to create fake messages, mostly to come from Bits of Gold, banks, or some other financial service. Phishing and impersonation attacks were explicitly mentioned in the Bits of Gold warning to the customers. Users were instructed not to share passwords, one-time verification codes, or private keys, as well as not to make any payments.

It is another data breach reported within the crypto industry in the last week. SafePal revealed that due to an authorisation vulnerability in the order tracking plugin, the order data of around 39,798 customers was at risk of being leaked. This data pertained to customers who had made their orders from March 2, 2025, through April 11, 2026, and included names, email addresses, shipping addresses, phone numbers, and purchase details.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Further reading: Crypto Frauds, Data Breach, Crypto Scams

Rahul Dhingra

Email Rahul Dhingra

Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More

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