CoinStats has reported an ongoing investigation into a recent security breach and is working to strengthen its infrastructure.
Recent activity shows that hackers involved in the CoinStats incident have moved almost $1 million worth of Ethereum to the cryptocurrency mixer Tornado Cash. According to blockchain security firm CertiK, two wallets connected to the June exploit transferred a total of 311 ETH—approximately $959,000—to Tornado Cash. One wallet sent 211 ETH, while the other sent 100 ETH.
Crypto mixers, like Tornado Cash, enhance privacy by blending identifiable funds with others, making it harder to trace individual transactions. This technique is often used by hackers to launder stolen funds.
CoinStats Suspends Service After Breach
On June 22, CoinStats, a crypto portfolio management service, temporarily suspended user activity due to a breach affecting 1,590 wallets. The company halted its application to address and contain the security incident.
CoinStats assured users that the breach had been contained and that neither connected wallets nor centralized exchanges (CEXes) were affected. The company advised users to transfer their funds using their exported private keys.
By July 3, CoinStats announced that its platform’s functionalities had been restored and were fully operational.
Summary Review: The recent security breach at CoinStats, which saw hackers moving nearly $1 million in Ethereum to Tornado Cash, highlights ongoing challenges in safeguarding digital assets. Despite the swift action taken by CoinStats to mitigate the attack and secure its infrastructure, the use of crypto mixers for laundering stolen funds underscores the need for heightened vigilance and robust security measures in the cryptocurrency industry. The platform’s recovery and restoration of services are steps towards regaining user trust, but the incident serves as a reminder of the importance of ongoing vigilance against cyber threats.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
