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CloudCone has announced a two-month compensation period for users.
From CloudCone
We are writing to share an important update regarding a recent incident that affected your VPS (Virtual Private Server) in Los Angeles, USA.
If you have missed our previous email, you may read it here.
Over the past week, our team has taken time to carefully reflect on the impact this incident had on you and your business. We understand that this was not merely a technical issue, but a situation that caused real disruption, stress, and unexpected challenges. This is not something we take lightly, nor is it the experience we ever want you to associate with our services.
Throughout the recovery period, our engineers and support teams have worked continuously, responding to thousands of support requests, rebuilding affected systems, and optimizing our infrastructure to handle exceptional demand. Many long days and late nights were spent with a single focus: restoring services safely and strengthening our platform to reduce the risk of similar incidents in the future. We know that trust is earned through consistent action, and we remain fully committed to rebuilding that trust with you.
As part of this commitment, we are providing the following to all affected customers:
Service Extension
Affected servers will automatically receive a free two-month service extension when renewed, for the next two renewal cycles. For example, an annual 12-month renewal will be extended to 14 months at no additional cost. The updated due dates will be reflected automatically as each renewal is processed.Monthly Backups for VPSs
In Q2 2026, affected customers will receive 50% off monthly server backups for up to one year on our new platform. This additional layer of protection reflects our ongoing commitment to improving data safety and providing greater peace of mind.Platform Improvements
As part of our long-term reliability and security strategy, we are actively transitioning away from our previous third-party platform. All VPS instances will be migrated to our new in-house platform, which is currently in its final testing phase and scheduled for launch by the end of March.We understand that no amount of compensation can fully make up for the inconvenience and disruption you experienced. However, we hope these measures reflect how seriously we take this matter and our sincere commitment to serving you better moving forward.
Thank you for your patience, understanding, and for giving us the opportunity to make
this right.If you have any immediate concerns or need assistance, our support team is here to
help.Sincerely,
The CloudCone Team
Comments
CloudCone appears to be abandoning Virtualizor and developing its own new system?
We clearly need another CloudCone topic.
Posting in one of those already existing is too hard.
LONG LIVE CloudCone.
Not sure If I am reading this wrongly the compensation only comes if one renews the service with them?
I can see this being worth it for those on monthly billing cycles but those on annual hmm..
That's how I read it too and the example is annual renewal.. be funny if it doesn't apply to monthly at all.
The way they have described the compensation screams "our cash flow is really really terrible."
I mean I can kind of understand it - if they've pissed people off so much that they'll quit at the end of the term, then giving 2 months free is just a waste for them. If people renew, then they'll probably stay happy customers especially with an extra 2 months.
Of course it sucks. They should give everyone an automatic extension by the length of the downtime at a minimum, even if they do also give an extra 2 months for renewal.
@Cloudcone Only for renewal is way bad.
It would be unbelievable if people would fall for that… But it is low end, unbelievable is daily bread.
I am not getting the issue here.
It is already evident that clients won't be able to recover any data.
So cloudcone gave 2 months extension as a good gesture which doesn't compensate anything but as am apology I guess.
People are complaining because.....?
Aren't they legally obligated to, at minimum, provide a cash refund at least for the amount of time the service was down?
Because loss of data, loss of time and loss of trust in the provider which was paid to host data securely. Given how breach was done - it is clear sign of incompetency to handle customer data. It is horrible, such companies should not exist.
I think the way the compensation email is worded seems like the compensation only applies if you pay more money to them instead of giving it to affected customers whether they intend to renew or not.
Some people may view that compensation should not have strings attached but some might think it is ok.
TLDR: Dear moro....sorry customers, Go xxxx yourself, we dont give sxxt about your data lost and down time.
I haven't received the mail even though I have a cloudcone account.
Can anyone share that mail?
The mail is shared by the OP in the first post.
According to which law and in which country would they be obligated to do that? Never even heard of such a thing.
No, and on the other hand, it would be natural to include cyberattacks and data breaches in a force majeure or “impossibility” clause in the terms. However, this requires the company to maintain industry-standard security before it legally can be considered an uncontrollable and unexpected event.
Isn’t they are Punjabi entity?
No, they are Sri Lankan, with a US business registration.
Interestingly, they seem to have started another brand https://edgecomputing.com/, not sure if it's due to the decline of CloudCone.
wait this says they gave a month's credit PLUS you get 2 months free at renewal twice: https://app.cloudcone.com/incident-346624
that's actually pretty damn good, how come that paragraph is missing from this post?
That is certainly a much better response. I wonder if they updated it after this post was created.
See https://lowendtalk.com/discussion/194003/quadranet-acquired
good news.
since my vps was not affected, i suppose I will not get 2 months compensation.
No, but i don't know their ToS. SLA is a perk not a guarantee.
I would call this hack exigent circumstances under any law, so worth considering too.
If you ask it if it's moral, hell no.
But if you ask it's legal, well maybe, but most likely yes.
Claim it! Say that you weren't able to access at your end.
It is their parent company. Edge bought Cloudcone back in 2024 (Since then, the quality got deteriorated).
The quality had been declining long before that. I stopped using them in 2021. It's still the same staff operating from Sri Lanka with the same tech stack, so I’m not sure if anything really changed after the acquisition. Regardless, edgecomputing seems to be new, and targeting a similar business model with Sri Lanka based staff.
Hello Everyone
We wanted to publish a transparent public update here regarding the recent incident that affected a portion of our Los Angeles Budget VPS infrastructure. Many of you asked for a clear explanation, so this comment provides a straightforward breakdown.
For anyone who wants to read the full official statement from our website, you can find it here: https://app.cloudcone.com/incident-346624
During the early hours of Friday, January 30, 2026, our monitoring systems detected that several virtual machines had lost network connectivity. We immediately isolated the affected nodes to prevent further spread, and a full technical and forensic investigation was launched.
From the earliest moments, the team prioritized transparency. Real-time updates were posted on the Official Status Page so customers could follow developments as they happened and stay informed throughout the recovery process.
Scope of Impact
The incident was limited in scope but significant for those affected:
Importantly, no other CloudCone services, products, or datacenter locations were affected. Customer personal information remained secure because personal data, billing records, and payment details are not stored on this third-party platform.
Immediate Response and Security Actions
As soon as the issue was identified, our engineering teams implemented several immediate measures to stabilize the platform and strengthen security:
Throughout the weekend of January 31 to February 1, DevOps Engineers and Support staff worked continuously. Thousands of support requests were handled while teams rebuilt systems and optimized infrastructure to manage the surge in demand. Long days and late nights were spent with one clear goal: restoring services safely while reinforcing the platform.
Recovery Efforts and Customer Support
As the new week began on Monday 2nd of February, CloudCone's systems experienced a large wave of VPS rebuild requests. Teams focused on scaling and optimizing the reinstall process to help customers get back online as quickly as possible. On the support side, the majority of affected customers received quick assistance in restoring any backups they had and resuming normal operations.
Internally, teams held multiple daily coordination meetings to stabilize operations and accelerate recovery efforts. The focus extended beyond short-term fixes; our goal was to rebuild trust through meaningful actions and long-term improvements.
Compensation Measures
As part of our commitment to supporting customers after the incident, we introduced these measures:
Credit Compensation Based on Customer Feedback: All impacted customers automatically received account credits equivalent to one full month of their VPS package. For example, a VPS billed at $60 per year would receive $5 in account credits added directly to the account balance.
Service Extensions: Affected servers will automatically receive a free two-month service extension at each of the next two renewals, for a total of 4 free months of service. For example, a standard 12-month annual renewal will be extended to 14 months at no additional cost. Updated due dates will be applied automatically as renewals occur.
Discounted Monthly Backups: In Q2 2026, affected customers will receive 50% off monthly server backups for up to one year on the upcoming platform. This initiative aims to strengthen long-term data protection and provide additional peace of mind.
Platform Improvements and Migration
All Budget VPS instances are scheduled to be migrated to CloudCone’s new in-house platform, which was already in final testing prior to the incident and is expected to launch by the end of March. The new platform is designed to deliver improved reliability, performance, and enhanced security.
We understand that no form of compensation can fully offset the disruption experienced. However, we emphasized that these actions represent a sincere effort to support customers and improve the overall experience moving forward.
Moving Forward
This external attack tested the resilience of both our infrastructure and our team. Despite the challenges, we reaffirmed our commitment to transparency, reliability, and continuous improvement.
We sincerely apologize to everyone affected and are grateful for the patience, understanding, and collaboration shown by the CloudCone Community 💚 throughout the recovery process. Many customers worked alongside the team to help rebuild services, and that partnership remains a core part of moving forward together.
As rebuilding continues and the new platform approaches launch, our focus remains clear: learning from the incident, strengthening our systems, and earning back customer trust through real actions, not just words.
We truly value every one of you.
Meanwhile, for the benefit of anyone criticising this response, on the 13th day without service, there's still complete radio silence from @HostSlick as to when or even if service might be resumed.