Wallets linked to the CoinStats exploit have moved nearly $1 million worth of Ethereum to cryptocurrency mixing protocol Tornado Cash. According to blockchain security firm CertiK, two wallets linked to CoinStats transferred a total of 311 ETH, worth approximately $959,000, to Tornado Cash in June. One wallet moved 211 Ethereum, while the other sent 100 ETH to the crypto mixer.
Breach affected 1,590 crypto wallets
Cryptomixers like Tornado Cash are used to keep transactions private by mixing potentially identifiable funds with many other funds. This anonymizes the transfers, a method often used by hackers to launder ill-gotten gains.
On June 22, CoinStats suspended user activity following a breach that affected 1,590 crypto wallets. The company shut down the application to “isolate the security incident.” CoinStats stated that the attack had been mitigated and that “none of the connected wallets and CEXs were affected.” Users were advised to transfer their funds using their exported private keys.
Improving efficiency and reliability
On June 30, CoinStats reported that they are optimizing and migrating their transaction database to another platform to improve efficiency and reliability. The company added that they are upgrading and auditing their systems.
On July 3, CoinStats announced that the platform’s functionality had been fully restored and was back up and running. A few days earlier, on June 26, CEO Narek Gevorgyan revealed that their infrastructure had been hacked after an employee was tricked into downloading malicious software onto a work computer. Gevorgyan said the following:
“Our AWS infrastructure has been hacked, with strong evidence that this occurred via one of our employees who was socially manipulated into downloading malicious software onto his work computer.”
Victims will be supported
The CEO expressed sympathy for those who lost funds in the attack, stressing that CoinStats would support victims and had discussed their options. Community members reported millions in losses, with one wallet reportedly losing nearly $9 million in Maker (MKR).
In a July 5 update, CoinStats stressed that it is still investigating the incident and taking steps to secure the new infrastructure. The company promised to share additional information soon, including measures to support victims.
Source: https://newsbit.nl/coinstats-exploit-bijna-1-miljoen-in-ethereum-verplaatst-naar-tornado-cash/
