Data Breach at Bits of Gold Affects 200,000 Customers

Bits of Gold, recognized as Israel's largest regulated cryptocurrency broker, has reported a significant data breach that has resulted in the theft of personal data belonging to around 200,000 customers. This breach poses a serious risk to the entire user base of the platform, which has built its reputation on a foundation of regulatory compliance and security measures.

The breach is particularly concerning for Bits of Gold, as it was the first company in Israel to obtain a virtual asset service provider (VASP) license from the Capital Market Authority in September 2022. This milestone positioned the firm as a leader in regulatory compliance within the Israeli digital asset market.

The specific details regarding the types of personal information that were compromised have not been disclosed. However, it is known that cryptocurrency brokers typically collect extensive identity documentation under know-your-customer (KYC) regulations. This documentation often includes government-issued identification, proof of address, and various financial details.

Despite promoting security features such as two-factor authentication and cold storage solutions for digital assets, these measures do not protect the personal identity documents stored on the company's servers. The breach raises alarms about the potential misuse of the stolen data, which could be exploited in phishing attacks, SIM-swap schemes, and social engineering tactics aimed at stealing digital assets.

Bits of Gold has played a pivotal role in Israel's cryptocurrency landscape, offering services that include trading in shekels and dollars, over-the-counter services, and API solutions for businesses. In April 2026, the company also received approval to issue the BILS stablecoin, a digital currency pegged 1:1 to the Israeli shekel, developed in collaboration with Solana and Fireblocks, with auditing conducted by EY.

The incident echoes previous breaches in the cryptocurrency space, such as the 2020 data breach experienced by Ledger, which exposed customer names and addresses, leading to targeted phishing campaigns and threats against users. For the 200,000 customers of Bits of Gold, the implications of this breach could be similarly severe, as their personal data may be weaponized for malicious purposes.