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Thursday, April 25, 2024

Kraken discovered Bitcoin ATM security flaw

A branch of the U.S. crypto exchange, Kraken Security Labs , has identified several security flaws in the Bitcoin distributor, General Bytes BATMtwo, with common use. The imperfection of device systems, according to the developers, allows fraudsters to access them. Information on this topic appeared on September 29 on the blog of the exchange platform.

The Kraken Review

Kraken analysts have discovered several security vulnerabilities of popular crypto distributors at the software and hardware level. According to the crypto exchange platform’s blog, these are devices from the manufacturer General Bytes. Representatives of Kraken drew attention to the fact that the developers have released several fixes to eliminate the insecurity. Despite this, the system remains sensitive. The developers encountered issues in the Android software running on the devices. By connecting a USB keyboard to the BATMtwo, one can gain full access to the user interface. In theory, this would allow potential criminals to install apps, copy files, or even send private keys to the device.

Kraken drew attention to the imperfection of access protection to General Bytes configurations. You can enter the system using a QR code. The developers noted that the same code applies to many crypto distributors.

“Our team found that a large number of distributors were configured with the same default administrator QR code allowing anyone to intervene and compromise the distributor,” said the Kraken Security Labs team.

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The team’s advice

Kraken has provided a number of means of protection for users and the owners or operators of Bitcoin distributors. For users, Kraken only recommends distributors that are in stores equipped with surveillance cameras. As for the owners and operators of General Bytes, on their own, Kraken offers to change the admin code, place the dispenser in an area with security control, and follow General Bytes best practices.

At the end of September 2021, General Bytes devices accounted for around 30% of the crypto ATM market. The majority of BATM distributors are located in the United States and Canada, and their total number is approximately 5,300 units, while in Europe there are approximately 824 distributors. Clearing the defaults will help preserve the assets of a large number of cryptocurrency users, analysts say.

Recall that previously, information appeared on the network that Kraken was fined $ 1.25 million for illegally providing US users with tools to trade Bitcoin-based margin products and ‘other cryptocurrencies. Representatives of the crypto exchange platform did not deny the breach .

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