CoinStats Faces Security Breach Impacting 1,590 Wallets; $2 Million Lost
Summary:
CoinStats, a cryptocurrency portfolio service, recently experienced a security breach where a hacker gained access to 1,590 CoinStats wallets through a compromised employee. The hack resulted in a loss of roughly $2 million. CoinStats's CEO, Narek Gevorgyan, assured victims of the hacker's attack that they would receive support and reassured that the company has discussed several potential solutions internally. The breach has prompted conversations about escalating concerns surrounding security among cryptocurrency service providers.
A recent security breach accessing 1,590 wallets from cryptocurrency portfolio service CoinStats was orchestrated through a compromised employee. On June 22, CoinStats suspended their services upon detecting a live attack on their wallets. Quick action restricted the breach to only 1.3% of total CoinStats wallets, culminating in a loss of around $2 million. On June 26, CoinStats' CEO, Narek Gevorgyan presented their internal investigation findings. He stated, "Our AWS infrastructure was infiltrated, and solid evidentiary leads indicate this was executed through a socially engineered ploy targeted at an employee, who was deceived into installing harmful software onto his occupational system." Social engineering is a frequently utilized strategy by hackers aimed at duping individuals to gain unauthorized access to a computer network. As a safety precaution, CoinStats deactivated their online platform while they address this security problem. Although Gevorgyan didn’t promise complete refunds to all affected parties, the company intends to roll out a well-detailed action step after comprehensive scrutiny of the incident. Expressing empathy for those who experienced financial loss due to this, Gevorgyan reassured their commitment to support the victims, discussing several potential solutions internally. Notwithstanding, some community users claim amplified losses because of this intrusion. For example, an individual by the alias Blurr.eth reported the loss of approximately $8.7 million. CoinStats is yet to verify these allegations. Crypto service providers are increasingly concerned about security breaches. CoinGecko, a cryptocurrency data compiler, experienced a security issue on June 5 due to a subdued employee account which led to compromised user data. Much like the CoinStats intrusion, the CoinGecko breach happened as a result of an employee account compromise, per the company's June 7 announcement. The compromised data included users’ personal information, like names, email addresses, and locations.
Published At
6/27/2024 10:47:11 AM
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