CoinStates security breached, over 1,500 linked crypto wallets compromised


The CoinStats crypto portfolio app has decided to temporarily halt all user activity after becoming the latest victim of a security breach over the weekend. The cybercriminals behind the hack lured CoinStats users into clicking on a malicious link, falsely promising users a reward of 14.2 ETH or $48,128 (roughly Rs. 40.2 lakhs). A total of 1,590 crypto wallets have been affected as part of this breach. This reportedly accounts for 1.3 percent of CoinStats’ total wallet numbers.

Let’s find out what happened

CoinStats officially confirmed about the hack through its X handle on June 22. The company’s post states that the hack primarily targeted iOS users.

The post also showed a screenshot of the fraudulent message CoinStats users received. The message claimed that recipients had won a reward of 14.2 ETH from a pool of 200 ETH. Furthermore, the message instructed CoinStats users to enter their AirScout wallets, which resulted in the withdrawal of funds from these wallets.

Some of the private keys stored on CoinStats’ servers have also reportedly been breached as part of this attack. This has led the company to believe that hackers may have been able to gain access to internal systems from where wallets are created for its users.

As of now, the exact amount of funds stolen from this hack is unclear. Coinstats has released a list of wallet addresses compromised in this incident.

What is Coinstats doing to mitigate the after-effects?

Following the incident, CoinStats has launched an internal investigation into the matter. In the coming days, the company plans to relaunch the app after completing the investigation process.

Details about the involvement of law enforcement officials also remain unclear.

The company plans to contact affected users with updates in the coming days. As of now, CoinStats has not said anything about compensating affected users.

The crypto sector continues to attract hackers

According to security service provider Immunefi, in May 2024, cryptocurrencies worth more than $473 million (roughly Rs. 3,950 crores) were lost due to hacking and rug pulling in 108 incidents.

The crypto sector witnessed another hack over the weekend, when Turkish crypto exchange BtcTurk claimed it had been hacked and several of its hot wallets had been accessed, some of which had crypto stolen. Binance is helping BtcTurk with its investigation and has reportedly frozen $5.3 million (roughly Rs. 44 lakhs) of funds connected to the attack.

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