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Crunchyroll is 'Working Closely With Leading Cyber Security Experts to Investigate' Possible Security Breach

ANN reached out to Crunchyroll after X (formerly Twitter) user International Cyber Digest wrote on Sunday that Crunchyroll may be facing a security breach through its ticketing system, which is outsourced through Telus in India. A spokesperson provided the following statement:

"We are aware of recent claims and are currently working closely with leading cyber security experts to investigate the matter."

The International Cyber Digest account wrote that the culprit stole 100 GB of customer analytics data, including identifiable information such as IP addresses, email addresses, credit card details, and more, using malware on the outsourcing partner's system. According to the account, the culprit told them that the breach happened on March 12.

This article will be updated following any further details.

Crunchyroll recently laid off a number of employees after a restructuring and redistribution of roles based on location. The company's restructuring is also due to a shift in its e-commerce strategy, and not due to cost-cutting measures.

The company is also facing a consumer digital privacy class action complaint alleging that Crunchyroll violated the Video Privacy Protection Act (VPPA). The plaintiffs accuse Crunchyroll of knowingly disclosing users' personally identifiable information concerning their video viewing activity on the company's application to a third-party marketing and analytics company Braze Inc. 

A 2022 class action lawsuit against Crunchyroll also alleged a violation of the VPPA for using Facebook Pixel to share users' video viewing information with third-party company Facebook. Crunchyroll settled the lawsuit for US$16 million and agreed to modify its use of tracking technologies to prevent disclosure of users' video viewing information without VPPA-compliant consent in September 2023.

Crunchyroll is an independently operated joint venture between U.S.-based Sony Pictures Entertainment and Japan's Aniplex. Sony Pictures Entertainment and Aniplex's Sony Music Entertainment (Japan) parent are both in turn subsidiaries of Tokyo-based Sony Group.

Sony's Funimation Global Group completed its acquisition of Crunchyroll from AT&T on August 9, 2021, after the company first announced the acquisition in December 2020. The purchase price was US$1.175 billion, and the proceeds were paid in cash at closing.  Funimation's home video releases are now listed under Crunchyroll.

Sources: Email correspondence, International Cyber Digest's X/Twitter account