A well-known cryptocurrency portfolio management specialist recently disclosed a significant cyber-attack that affected 1590 of its customers’ crypto wallets. CoinStats, a leading crypto market tracker, offers users visibility into over 300 wallets and exchanges, 1000+ DeFi protocols, and more than 20,000 cryptocurrencies. The firm also provides CoinStats wallets hosted by the company, totaling around 120,000 wallets, which were impacted by the attack.
The incident was made public by CoinStats on social media platform X, where they advised customers to move their funds if they had their private key exported. Within two hours, the company claimed to have mitigated the attack and temporarily shut down the application. According to CoinStats, only 1.3% of all CoinStats Wallets were affected, with 1590 wallets impacted. The firm reassured customers that the list of affected wallets might change as the investigation progresses, but significant changes were not expected.
Narek Gevorgyan, the CEO of CoinStats, also chimed in on the attack, suggesting that the threat actors behind the incident may have ties to North Korea. He mentioned that the total drained amount from all the wallets was approximately $2 million, with $800,000 coming from two wallets that imported their seed phrases to CoinStats Wallet. Gevorgyan pledged to provide a detailed and transparent report on the hack in the near future.
North Korea is known for its involvement in cryptocurrency theft, using the proceeds to finance its nuclear and ballistic missile program. According to reports, the hermit nation generates about half of its foreign-currency income from cyber-attacks on cryptocurrency and related targets. The United Nations has estimated that the Kim Jong-un regime has accumulated billions through these illicit activities over the past few years.
As CoinStats works to address the aftermath of the cyber-attack, customers are advised to stay vigilant and take necessary precautions to safeguard their digital assets. Stay tuned for further updates on this developing story.