The latest news from the crypto payment gateway CoinsPaid underscores a harsh reality.
More specifically, the company confronts its second major security breach in just six months. This incident highlights critical vulnerabilities in the crypto ecosystem. It also draws attention to the need for heightened security measures and user awareness.
A Troubling Pattern: CoinsPaid’s Security Challenges
CoinsPaid, an established Estonian digital asset payment processor, is grappling with a significant security breach. This recent event marks the second such incident quickly, raising questions about the company’s ability to safeguard its assets and client trust. CoinsPaid has a substantial track record, having processed over 19 billion euros in crypto transactions, but these breaches cast a shadow over its achievements.
Rewinding to July 2023, CoinsPaid faced a similar predicament when it suffered a security breach resulting in the theft of over $37 million. The method used by the attackers was as cunning as it was simple: a fake job interview. An unsuspecting employee, lured by a job offer, inadvertently downloaded malicious software. This software gave the attackers deep access to CoinsPaid’s infrastructure, leading to substantial financial loss.
CoinsPaid attributed this attack to the notorious Lazarus Group, a North Korean state-backed entity. This group, known for its sophisticated cyber tactics, had reportedly targeted the platform since early 2023.
The Latest Breach: An Alarming Escalation
Fast forward to January 2024, and history repeats with a different twist. The recent breach involved unauthorized transactions amounting to nearly $7.5 million. Cyvers, a Web3 security firm, played a crucial role in detecting these irregularities through its AI system. The attack was meticulously executed, involving multiple cryptocurrencies, including USDT, USDC, ETH, and the native CPD asset.
Cyvers’ team, through their X (formerly Twitter) account, shed light on the attackers’ methods. Approximately 97 million CPD tokens were swapped for ETH, valued at around $368,000. These funds were then moved to externally owned accounts and various crypto exchanges, including MEXC, WhiteBit, and ChangeNOW.
The in-depth investigation by Cyver uncovered further unauthorized transactions. This time, BNB worth over $1 million was involved, pushing the total loss close to the $7.5 million mark.
The Ripple Effect: Consequences and Reflections
These security breaches at CoinsPaid are not just a blow to the company but resonate throughout the crypto community. They serve as a stark reminder of the vulnerabilities inherent in digital asset transactions and the sophistication of cybercriminals.
For CoinsPaid, these incidents have potentially eroded customer confidence and brought scrutiny to its security measures.
Moreover, the breaches highlight the importance of robust security protocols in the crypto world. It’s a wake-up call for similar companies to strengthen their defenses and for users to be vigilant about their digital assets.
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