Poloniex faces security breach and data leak, urges users to change passwords

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Updated on Mar 11, 2020

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Crypto exchange Poloniex warned users of a recent data leak, urging them to change their passwords and set up 2FA.
The time, date, size, and type of data that was leaked remain unknown, as the exchange is still investigating the incident.
The leak also comes as the last in the entire series of unfortunate events that the exchange has been experiencing.

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Cryptocurrency exchange Poloniex made numerous headlines recently after becoming an international exchange. The move also allowed it to become one of the biggest TRON hubs around the world. Today, however, the exchange made headlines for a different reason — a security breach and data leak that it recently experienced.

The details regarding the data leak are still unclear, and the size of the leak remains uncertain. However, the exchange made a swift move in an attempt to protect its customers. It sent password change emails to all of its clients.

While many initially believed that the emails are a part of some new scam, it was recently confirmed that they are authentic, as the exchange admitted the breach. Further, it urged users to immediately set up two-factor authentication, in order to avoid having their accounts hijacked.

Steps to set up 2FA:
– Install an authenticator application on your phone
– Click 2FA in your Polo settings
– Scan the barcode or manually enter the 16 digit key
– Safely store your backup code & QR code in case your phone gets lost, stolen, or erased

Tada! ????
— Poloniex Customer Support (@PoloSupport) December 30, 2019

So far, the exchange has not published an official statement, so a lot of details remain unknown, as mentioned. Users remain concerned regarding the size of the leak, the time and date of the breach, as well as the type of data that was stolen.

The incident comes at a very bad time for Poloniex

The incident had unfortunate timing, as it came right after the exchange started reinventing itself. As mentioned, Poloniex recently went international. This forced it to close its doors to US traders, but at the same time, it was able to add new coins, and it became a big supporter of TRX.

Its aim was to attract more users, which is why it also modified its fees, which are supposed to come into effect on January 8, 2020. It saw a mass outflow of BTC and ETH over the past few years, and it delisted numerous assets due to the altcoin fail. This is why it put so much emphasis on TRX, which it saw as its opportunity to get back into the game.