Dragonfly Digital Management Discloses Data Breach Affecting Sensitive Personal and Financial Information
Dragonfly Digital Management LLC, a San Francisco-based SEC-registered cryptocurrency and blockchain venture capital firm, revealed a data breach detected on January 16, 2026, that may have exposed sensitive personal and financial information. The incident was reported to the Massachusetts Office of Consumer Affairs and Business Regulation on April 10, 2026, with consumer notifications issued the same day.
While the total number of affected individuals across the U.S. remains undisclosed, at least nine Massachusetts residents were impacted. The breach involved unauthorized access to data collected through Dragonfly’s compliance processes, potentially exposing a range of personal details, including:
- Names, phone numbers, and email addresses
- Physical addresses
- Taxpayer identification or Social Security numbers
- Government-issued IDs (passports, driver’s licenses)
- Bank and financial account numbers
No loss of funds was reported as a result of the incident.
Following the discovery, Dragonfly engaged CrowdStrike, a third-party cybersecurity firm, to conduct a forensic investigation. In response, the company is offering 24 months of complimentary identity protection and credit monitoring through Experian IdentityWorks, including credit reports, daily monitoring, identity restoration support, and $1 million in identity theft insurance. Affected individuals must enroll by July 31, 2026, using an activation code provided in their notification letter.
For further assistance, affected parties can contact Experian’s customer care team or report suspicious communications to Scott Hershorin at Dragonfly.
Source: https://www.claimdepot.com/data-breach/dragonfly-digital-2026
Dragonfly cybersecurity rating report: https://www.rankiteo.com/company/dragonfly-capital-partners
"id": "DRA1776206511",
"linkid": "dragonfly-capital-partners",
"type": "Breach",
"date": "1/2026",
"severity": "100",
"impact": "5",
"explanation": "Attack threatening the organization's existence"{'affected_entities': [{'customers_affected': 'At least nine Massachusetts '
'residents (total undisclosed)',
'industry': 'Cryptocurrency and Blockchain',
'location': 'San Francisco, USA',
'name': 'Dragonfly Digital Management LLC',
'type': 'Venture Capital Firm'}],
'customer_advisories': 'Affected individuals must enroll in identity '
'protection by July 31, 2026, and report suspicious '
'communications to Scott Hershorin at Dragonfly.',
'data_breach': {'personally_identifiable_information': 'Yes',
'sensitivity_of_data': 'High',
'type_of_data_compromised': ['Names',
'Phone numbers',
'Email addresses',
'Physical addresses',
'Taxpayer identification or '
'Social Security numbers',
'Government-issued IDs '
'(passports, driver’s licenses)',
'Bank and financial account '
'numbers']},
'date_detected': '2026-01-16',
'date_publicly_disclosed': '2026-04-10',
'description': 'Dragonfly Digital Management LLC, a San Francisco-based '
'SEC-registered cryptocurrency and blockchain venture capital '
'firm, revealed a data breach that may have exposed sensitive '
'personal and financial information.',
'impact': {'data_compromised': 'Sensitive personal and financial information',
'financial_loss': 'No loss of funds reported',
'identity_theft_risk': 'High',
'payment_information_risk': 'High'},
'investigation_status': 'Ongoing (forensic investigation by CrowdStrike)',
'references': [{'source': 'Massachusetts Office of Consumer Affairs and '
'Business Regulation'}],
'regulatory_compliance': {'regulatory_notifications': 'Reported to '
'Massachusetts Office '
'of Consumer Affairs '
'and Business '
'Regulation'},
'response': {'communication_strategy': 'Consumer notifications issued on '
'April 10, 2026',
'remediation_measures': 'Offering 24 months of complimentary '
'identity protection and credit '
'monitoring through Experian '
'IdentityWorks',
'third_party_assistance': 'CrowdStrike (forensic investigation)'},
'title': 'Dragonfly Digital Management Data Breach',
'type': 'Data Breach'}