Binance Founder Changpeng Zhao Warns of 'Phishing' After Crypto Wallet Provider Reports Data Breach Affecting Nearly 40,000 Customers

Cryptocurrency wallet provider SafePal confirmed a security breach on Sunday involving unauthorized access to data for about 40,000 customers.What HappenedSafePal said the incident did not involve any seed phrases, private keys, bank account details, payment card numbers or government-issued identification numbers.The security flaw was identified in the order-tracking function for a plug-in related to customer order information.“Information including name, email address, shipping address, phone number, and purchase details was accessed externally without authorization due to the flaw,” the hardware wallet firm revealed.SafePal warned that the exposed order details could be used for targeted phishing and impersonation attacks, and urged customers to stay vigilant. Read Also: SafePal’s ResponseSafePal said it has fixed the issue and introduced additional security measures. An independent third-party security firm is being hired to validate the fix and conduct a comprehensive review of SafePal’s order-processing systems.The company has also reduced the retention period for personal information in its system to 90 days, subject to applicable legal requirements.SafePal added that it has established a dedicated support channel for this incident and has identified and informed all affected customers individually via email.Founded in 2018, SafePal is the first wallet in by YZi Labs, formerly Binance Labs. In January 2025, YZi Labs said in a statement that it would ‘operate independently’ and expant investment focus beyond crypto and blockchain to include AI and Biotech.Binance founder Changpeng Zhao reacted to the data breach, warning users to watch for phishing attempts.Beware of phishing attempts! 👇Disclosure: SafePal is a YZiLabs portfolio company (minority investor). Another Hardware Wallet TargetedThis incident marks the latest in a string of hardware wallet security breaches.Earlier this month, attackers drained 1,404.43 BTC—worth roughly $89 million—from Coldcard hardware wallets. The company subsequently carrying the compromised firmware.A hardware wallet is a physical device that stores your cryptocurrency private keys offline, claiming stronger protection against malicious software and online thieves. Read Also: Photo Courtesy: ozrimoz on Shutterstock.com