Cryptocurrency

2024

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<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

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