a few user reported their gatehub wallet been hacked and XRP sent to r9do2Ar8k64NxgLD6oJoywaxQhUS57Ck8k

[at3n 317]

2 hours ago, Harrryquartz said:

This is the fine that company which had a data breach faces in the the UK where there was no financial harm to its customers, there are still a lot of options open once Gatehub make their next statement stating what they know.

Does anyone know if crypto secret keys, in this context, would be treated as personal data under GDPR?

In theory, Gatehub did not keep records of people's secret keys (only encrypted keys, which Gatehub could not decrypt), so it could be argued that an individual could not be identified using only the secret key.

I don't think it's the same as credit card data, which will always be linked to an individual's record in a company's database.

Also, fines such as the ones above would not be compensation to the victims, that would still need to be pursued separately. In fact, if such a fine was imposed on Gatehub, it would make it even harder for them to compensate...

Edited July 8, 2019 by at3n
Clarification

[mrenne 716]

2 hours ago, at3n said:

In theory, Gatehub did not keep records of people's secret keys (only encrypted keys, which Gatehub could not decrypt), so it could be argued that an individual could not be identified using only the secret key.

I don't think it's the same as credit card data, which will always be linked to an individual's record in a company's database.

Encrypted personal data is also personal data according to GDPR.

Furthermore, wallet addresses can be extracted from secret keys and wallet addresses could be stored together with personal data in KYC files, so it is theoretically possible to link the secret key to the identity of a person. This is a grey area in GDPR, with room for discussion, but there definitely are arguments.

[Harrryquartz 93]

3 hours ago, at3n said:

Does anyone know if crypto secret keys, in this context, would be treated as personal data under GDPR?

In theory, Gatehub did not keep records of people's secret keys (only encrypted keys, which Gatehub could not decrypt), so it could be argued that an individual could not be identified using only the secret key.

I don't think it's the same as credit card data, which will always be linked to an individual's record in a company's database.

Also, fines such as the ones above would not be compensation to the victims, that would still need to be pursued separately. In fact, if such a fine was imposed on Gatehub, it would make it even harder for them to compensate...

BA was just an example of a hack and decisive action by the regulator. ICO can order compensation as well as issue fines and it relates to all aspects of personal data. Their prime responsibility is protect individuals affected or potentially affected by data breach and not the company.

 Gatehub have now contacted the ICOas they are registered as tier 1 organisation with ICO......

Registration number:ZA198432

Date registered:05 August 2016

Registration expires:04 August 2020

Payment tier:Tier 1

Data controller:Gatehub Limited

Address:88-90 Hatton Garden 
London 
EC1N 8PN

.............and ActionFraud to report and will be issuing statement via email  in the next 7days. 

Edited July 8, 2019 by Harrryquartz

[at3n 317]

4 hours ago, mrenne said:

Encrypted personal data is also personal data according to GDPR.

But normally the data controller has a means to decrypt such data. If a controller encrypts the data and throws away the key (hands it off to the user in this case), does that reduce their need for compliance (could it count as anonymised data)? Furthermore, if the encryption is actually done by the client's browser, then the data controller never even knew the encryption key to begin with, and is essentially acting as a cloud storage service for data that was encrypted by the user. If all that was true, and perfectly executed, does that change anything?

I guess that in this case it doesn't matter, because whatever protections were in place clearly failed, and not as a result of user error (we can presume).

Perhaps I'm showing my ignorance, but the concept is interesting to discuss.

4 hours ago, mrenne said:

Furthermore, wallet addresses can be extracted from secret keys and wallet addresses could be stored together with personal data in KYC files, so it is theoretically possible to link the secret key to the identity of a person. This is a grey area in GDPR, with room for discussion, but there definitely are arguments.

Good point, maybe that would be enough to get them.

[Silkjaer 542]

Likely only the secret key is stored in encrypted form, but looking at session data also “personal identifiable information” such as email addresses, is stored and accessible with the API. 

[Silkjaer 542]

We've been contacted by a victim of June 27, so while we thought that the perpetrators were done this was a cue to look into movements to see if there were other thefts we didn't know about. 

Perpetrators have changed tactics and we have been able to identify several thefts, the latest being July 7, and the stolen amount is now close to 26M.

[jlripple 92]

Gatehub really screw up big time. Ripple trade should remove them from their website. 

[kanaas 3,903]

We've been contacted by a victim of June 27, so while we thought that the perpetrators were done this was a cue to look into movements to see if there were other thefts we didn't know about. 
Perpetrators have changed tactics and we have been able to identify several thefts, the latest being July 7, and the stolen amount is now close to 26M.

What do you mean by changing tactics? In what sense they changed?

[Silkjaer 542]

40 minutes ago, kanaas said:

What do you mean by changing tactics? In what sense they changed?

Not sending funds much around, changing accounts quite often etc. So only slight changes in how they operate.

[mrenne 716]

Now I am wondering, are there still xrpchat members that are keeping their funds at GateHub?

[kanaas 3,903]

2 hours ago, mrenne said:

Now I am wondering, are there still xrpchat members that are keeping their funds at GateHub?

hope not 

[kanaas 3,903]

On 7/8/2019 at 8:15 AM, mrenne said:

Yes, and sometimes the person responsible to keep the car keys is responsible if the car gets stolen. It just depends on legislation and situation. That's why I asked if the person that came with such a blanket statement was a specialist or not. If not, his answer is quite useless.

Don't know how that legally translates, but there is a fundamental difference between cars/carkeys and cryptoassets/secrets. The first can become physically separated what means that the holder of the keys de facto cannot be responsible for the state of the car neither for the theft of the car, unless that car is placed on an environment that's under his full control (private parking lot, garage). With crypto one can say that the asset virtually is tied and even makes part of the keys and therefor being under full control of the key holder(s). One could say that encryption may separate the keys from the asset, but I think that's a weak argument and as said, I've no idea how this translates to different laws and jurisdictions..... We might soon (?) find out I guess....

Edited July 10, 2019 by kanaas

[at3n 317]

16 hours ago, mrenne said:

Now I am wondering, are there still xrpchat members that are keeping their funds at GateHub?

For me, only small wallets that I use for testing; I still like the user interface and the simplicity of having someone else look after multiple sets of keys for you. 

But it would mean nothing to me if it was stolen. Haven't kept serious amounts on there since 2017.

[Harrryquartz 93]

Gatehub have just released this information at conclusion of initial investigation: 

Our Security Team has concluded the first phase of an extensive forensic investigation intothe recent cyber attack on GateHub. A public statement with more information will be published on our blog soon. We have identified the accounts that were targeted in this attack and the information that was compromised.

According to our records, the perpetrator gained unauthorized access to the following information:

Email

Hashed password

Hashed recovery key

Encrypted XRP ledger wallets secret keys (non-deleted wallets only)

First name (if provided)

Last name (if provided)

The perpetrator did not gain access to the following information:

Phone number

Address

Nationality

Citizenship

ID document(s)

Proof of residence document(s)

Date of birth

Place of birth

Any other information not included in the first list

Edited July 11, 2019 by Harrryquartz

[princesultan 807]

Wow that's really awful.