Digital Securities
Digital Securities Launchpad, TokenSoft, Doxxes 4500 Users
Those who are interested in the world of crypto assets may have heard of Tokensoft. Founded in 2017 and headquartered in San Francisco, California, Tokensoft positions itself as a ‘leading technology and security platform’ for companies looking forward to issuing blockchain assets at scale and within compliance. However, recently the firm was in the news for negative reasons.
The Tale of Mistakenly Posted Information
The tweet, posted from the company’s official handle (@TokensoftInc), categorically declared the company officials becoming aware of information that was ‘mistakenly posted in Tokensoft’s social media channels.
Clearly, the information was sensitive and pertained to client-specific sensitive disclosures. TokenSoft admitted, in no ambiguous terms, that the mishap did not reflect its confidentiality standards. And thus, the company drew an end to its statement by committing to more rigorous care and considerations as expected by its clients.
What Was it All About?
Further probes into the mishap led to some rather startling findings. It was found that the company had doxxed more than 4,000 users.
In general parlance, Doxxing, also spelled as Doxing, refers to revealing information online that could lead to identifying someone. Such information may include a person’s real name, address, contact number, workplace details, financial information, etc.
The information came on the company’s Discord channel from a community manager with the handle “Nick G.”
To be more specific, the manager posted the list of users claiming that they were gaming the Tokensoft DAO’s airdrop.
The list was independently verified by entities such as CoinDesk, which could contact real users by using the information revealed. The users hailed from the Philippines and were taken aback when they found that they had made it onto the list.
TokenSoft has a KYC process in place, as it registered with the SEC as a transfer agent in 2019. In 2021, the firm allowed firms issuing digital assets through it to make trades on them on tZERO’s registered alternative trading system.
What remains to be seen is how TokenSoft handles the aftermath of such a leak in the days to come and what its investors – Coinbase Ventures, Headline, and Meltem Demirrors – have got to say about it.
