Wallets associated with the CoinStats exploiter have recently transferred nearly $1 million in Ether to the cryptocurrency mixing service Tornado Cash.
Blockchain security firm CertiK identified that two wallets linked to the June CoinStats exploit moved 311 ETH, valued at approximately $959,000, to Tornado Cash.
Specifically, one wallet transferred 211 ETH, and the other sent 100 ETH to the crypto mixer.
Crypto mixers help maintain transaction privacy by blending identifiable funds with a pool of other funds, effectively anonymizing transfers.
Hackers frequently use these services to launder their stolen assets.
On June 22, CoinStats, a crypto portfolio manager, halted user activity due to a breach that compromised 1,590 crypto wallets.
The company promptly shut down its application to “isolate the security incident.”
CoinStats assured that the attack had been contained and emphasized that “none of the connected wallets and CEXes were impacted.” The firm advised affected users to move their funds using exported private keys.
By June 30, CoinStats announced efforts to optimize their transaction database and migrate to a new platform to enhance efficiency and reliability.
Additionally, they planned to upgrade their systems with further audits and improvements.
On July 3, CoinStats confirmed that its platform’s functionalities had been restored and were fully operational.
In a June 26 statement, CoinStats CEO Narek Gevorgyan provided insights into the investigation.
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Gevorgyan disclosed that their AWS infrastructure was compromised, suggesting that an employee was deceived into downloading malicious software. Gevorgyan explained:
“Our AWS infrastructure was hacked, with strong evidence suggesting it was done through one of our employees who was socially engineered into downloading malicious software onto his work computer.”
The CEO expressed empathy for those who lost funds and assured that CoinStats would support the victims, having already discussed their options.
Community reports indicated substantial losses, including one wallet reportedly losing nearly $9 million in Maker (MKR).
In a July 5 update, CoinStats reiterated their ongoing investigation into the incident and outlined actions to secure their new infrastructure.
The company promised to share additional information soon, including measures to support the victims.
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