Authorities in France have initiated a preliminary inquiry into a cybersecurity incident involving the cryptocurrency tax platform Waltio, which may have jeopardized the personal details of its users.

A recent advisory from French cybersecurity agencies disclosed that the Paris Public Prosecutor’s Office, along with the National Cyber Unit, is investigating the type of data compromised and the identities of the affected Waltio customers. The alert cautioned that victims of the data breach might be targeted by criminals pretending to be security personnel in order to seize their digital assets.

Waltio Data Breach Notice Thursday notice on Waltio data breach. Source: Paris Public Prosecutor’s Office

According to a report from Le Parisien on Friday, hackers identified as the Shiny Hunters demand a ransom from Waltio following the data breach. This group compromised the sensitive information of around 50,000 users, predominantly located in France.

The notice added that many criminals have targeted cryptocurrency holders globally, using compromised data to physically confront victims regarding their digital currencies, risking their safety and that of their loved ones.

The targeting of crypto holders or their family members has become known as a “wrench attack,” where perpetrators might use violence or threats to compel individuals to transfer their assets. Reports indicate that such incidents have occurred in France and other nations.

Additional Regulatory Context

French authorities are allegedly urging crypto companies to comply with the Markets in Crypto-Assets Regulation (MiCA) framework. Companies that do not adhere to the guidelines must declare by the end of June whether they will pursue a MiCA license or cease operations in France.