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Crypto payment gateway CoinsPaid is grappling with its second security breach in the last six months, raising concerns over the vulnerability of digital assets.
The breach, reported by Web3 security firm Cyvers, reveals unauthorized transactions amounting to nearly $7.5 million.
AI System Alerts Cyvers
On January 6, Cyvers' artificial intelligence system identified a series of irregular transactions, enabling the withdrawal of $6.1 million in digital assets, including Tether (USDT) and CoinsPaid's native token CPD.
According to Coin Telegraph, the attacker converted approximately 97 million CPD tokens, valued at around $368,000, into ETH. Subsequently, the funds were moved to externally owned accounts (EOAs) and crypto exchanges MEXC, WhiteBit, and ChangeNOW.
At the time of reporting, CoinGecko data indicated a 39.5% decrease in CPD's value, trading at $0.0006.
Further investigation by Cyvers revealed additional unauthorized transactions involving Binance Coin (BNB), surpassing $1 million. The cumulative impact of these unauthorized activities now stands close to $7.5 million.
CoinsPaid's History of Security Breaches
In the past six months, this recent breach marks the second setback for CoinsPaid, an Estonian payment processor for digital assets.
The company, handling over 19 billion euros in crypto transactions, has not issued a statement on the latest attack.
In July 2023, CoinsPaid experienced a significant security breach, resulting in more than $37 billion in theft.
During this earlier incident, hackers utilized a fake job interview to deceive an employee, enabling them to download malicious code and gain unauthorized access to CoinsPaid's infrastructure.
In a post-mortem report following the July 2023 breach, CoinsPaid attributed the attack to the North Korean state-backed Lazarus Group.
According to Be In Crypto, the report highlighted the group's persistent attempts to infiltrate the platform since March 2023.
After facing multiple failures, the Lazarus Group shifted its approach to employ "highly sophisticated and vigorous social engineering techniques," targeting employees rather than directly attacking the company.
According to blockchain intelligence firm TRM Labs, the Lazarus Group, known for its involvement in various crypto hacks in 2023, reportedly stole at least $600 million in crypto assets over the year.
Photo: Arget/Unsplash
