• MetaMask, a popular cryptocurrency wallet, experienced a data breach that affected 7,000 users.
• The source of the data breach was a third-party service provider.
• The firm clarified its privacy policy in response to complaints about its data collection practices.

MetaMask Reports Security Breach

MetaMask, the company behind the popular cryptocurrency wallet, has reported a security breach affecting 7,000 users. According to the firm, one of its third-party service providers was the source of the data theft.

Privacy Policy Criticism

In November 2022, MetaMask amended its privacy policy which drew criticism for allowing a communication protocol provider to gather user data including IP address and Ethereum wallet address during transactions. In response to significant complaints regarding their data collection practices, Consensys provided clarification on its privacy policy.

Types of User Information Exposed

The firm revealed that user data had been compromised with around 7,000 people who contacted MetaMask’s customer assistance with sensitive information between August 1st 2021 and February 10th 2023 being affected by it. It is likely that email addresses were exposed although other information such as names, addresses, phone numbers and credit card details could have been leaked over an 18-month period.

Security Assured

Despite this news causing alarm in the crypto community, developers of the MetaMask add-on and mobile app have assured users that they remain secure as it is non-custodial software meaning it does not record any information about its users.

Regulatory Dangers Facing Cryptocurrency Sector

Instances such as this might increase already substantial regulatory dangers facing the cryptocurrency sector although further investigation into this matter is still needed in order to determine specifics of the breach itself.