Summary

  • There has been a new development in the CoinStats attack.

  • Hackers moved $1 million worth of Ethereum through two different wallets.

  • In this process, new statements from the CoinStats team were not delayed.

  • Market impact: Neutral

  • New Development in Hack Attack: 1 Million Dollar Ethereum Transfer Made

    Summary

    • There has been a new development in the CoinStats attack.

    • Hackers moved $1 million worth of Ethereum through two different wallets.

    • In this process, new statements from the CoinStats team were not delayed.

    • Market impact: Neutral

    It was noted that wallets linked to the CoinStats attack transferred almost $1 million worth of Ethereum to the cryptocurrency mixing protocol Tornado Cash. Blockchain security firm CertiK stated that two wallets linked to the CoinStats attack in June transferred 311 Ethereum worth approximately $959,000 to Tornado Cash. One wallet held 211 Ethereum while the other sent 100 Ethereum to the crypto mixer.

  • New Development in CoinStats Attack

    Crypto mixers keep transactions secret by combining potentially identifiable funds with many other funds. This process anonymizes fund transfers between services and is often used by hackers to launder their ill-gotten gains. On June 22, crypto portfolio manager CoinStats suspended user activity following a breach affecting 1,590 crypto wallets. The company announced that it closed the application in order to isolate the security incident.

  • The firm said the attack was mitigated and stated that none of the connected wallets and CEXs were affected. The company urged affected users to move their funds using their exported private keys. On June 30, CoinStats said they were optimizing their transaction database and moving to a different platform to increase efficiency and reliability.

  • The company also said they are improving systems with upgrades and audits. On July 3, CoinStats announced that functionality on its platform had been restored and is fully operational.

  • Details on the subject

    On June 26, CoinStats CEO Narek Gevorgyan revealed some investigation details. According to Gevorgyan, the infrastructure was hacked, with evidence showing that one of his employees was tricked into downloading malware onto his work computer:

    “Our AWS infrastructure was hacked and there is strong evidence that this was done by one of our employees who downloaded malware onto a work computer through social engineering.”

    The manager also empathized with those who lost their funds in the attack, emphasizing that they will support users and that they are already discussing their options. Community members reported losses in the millions of dollars; One wallet allegedly lost almost $9 million in Maker (MKR).

  • In an update dated July 5, CoinStats emphasized that it was still investigating the incident and had taken action to ensure its new infrastructure was secure. The company said they will share additional information, including user support measures, soon.

  • 📈📉 #Ethereum✅ #eth $ETH