Cryptocurrency

2024

Million

when

<p>The post <a href="https://coinpedia.org/news/coinstats-suffers-2-million-loss-in-crypto-hack-ceo-points-to-social-engineering-tactics/" rel="noopener noreferrer nofollow">CoinStats Suffers $2 Million Loss in Crypto Hack, CEO Points to Social Engineering Tactics</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>On the 22nd of June, CoinStats, a prominent crypto platform<a href="https://coinpedia.org/news/crypto-hacks-btcturk-coinstats-and-others-lose-millions/" rel="noopener noreferrer nofollow"> experienced</a> a major security threat forcing them to stop all their services temporarily. $2 million worth of digital currency was taken off from some people’s wallets. Through quick intervention by company, the situstion was controlled to prevent more loss. Stealing away $2 million meant that almost 1.3% of CoinStats wallets lost crypto due this theft.</p>
<p>1,590 crypto wallets were affected by the breach, and the total stolen crypto is approximately $2 million. According to CoinStat’s CEO <a href="https://x.com/narek_gevorgyan/status/1805873896836440411" target="_blank" rel="noopener noreferrer nofollow">Narek Gevorgyan</a>, the breach was caused by means of social engineering. Consequently, a CoinStats’ staff member was hoaxed into downloading infected software through which a hacker obtained access to AWS infrastructure of a company.</p>
<h2 class="wp-block-heading" id="h-ceo-s-response-and-investigation-findings">CEO’s Response and Investigation Findings</h2>
<p>Five days after the incident, on June 26, Gevorgyan went to social media where he <a href="https://x.com/narek_gevorgyan/status/1805873896836440411" target="_blank" rel="noopener noreferrer nofollow">revealed </a>the outcomes of an in-house research. It has been proved that the cyber-attack was as a result of a social engineering attack on one of the workers in their company. Consequently, CoinStats infrastructure was hacked hence moneys getting lost from the wallets that were hit.</p>
<p>He tweeted that it was unfortunate what had happened &amp; talked about ways in which they would assist those affected; though he didn’t make it clear if refunds would be made to those who were hacked.</p>
<p>CoinStats has disclosed a loss of $2 million while community reports suggest that the actual losses is bigger. Blurr.eth associated wallet reportedly lost 3,657.46408 MKR tokens that are around $8.7M going by current rates as per <a href="https://x.com/WuBlockchain/status/1804707183961276703" target="_blank" rel="noopener noreferrer nofollow">Wu Blockchain</a>. He sold off 2,482 ETHER after stealing 3657 MAKER Cryptocurrency leading to a collapse of 7 percent within minutes for MKR. CoinStats is yet to either comment or verify these extra assertions.</p>
<h2 class="wp-block-heading" id="h-broader-context-of-crypto-hacks-in-2024">Broader Context of Crypto Hacks in 2024</h2>
<p>The CoinStats hack is part of a broader trend of increasing crypto security breaches in 2024. According to the <a href="https://downloads.ctfassets.net/t3wqy70tc3bv/25QlpTkJpMp7GrMm8w8FAU/6b646726535fc1def965ae12fee6a9a0/Immunefi_Crypto_Losses_in_Q2_2024.pdf" target="_blank" rel="noopener noreferrer nofollow">quarterly report</a> from Immunefi, there were 72 incidents in which $572.7 million were lost to hacks and scams.&nbsp;</p>
<p>This is an enormous leap from $336.3 million that were lost in the previous quarter marking a whopping 70.3% increase and almost double too when compared against $265.5 million that disappeared within just one quarter back in 2023.</p>
<p>Also Read: <a href="https://coinpedia.org/news/crypto-hacks-and-scams-surge-in-q2-costing-crypto-industry-over-573-million/" target="_blank" rel="noopener noreferrer nofollow">Crypto Hacks and Scams Surge in Q2, Costing Crypto Industry Over $573 Million</a></p>

CoinStats Suffers $2 Million Loss in Crypto Hack, CEO Points to Social Engineering Tactics

Table of Contents

CoinPedia News

Other articles published on Jun 28, 2024

JamboTechnology Joins GAL Staking Ecosystem as New Partner

Web3 Trustpilot News: Revolutionary Platform Unites Creators and Users

Worldcoin Foundation Announces Wave1 Community Grants Recipients

Binance Added Many FDUSD Trading Pairs To Margin Transactions

Why is TARS Protocol (TAI) AI Crypto Price Pumping?

UAE And Vietnam Lead In Embracing Digital Assets

Join our free newsletter for daily crypto updates!