How an Insider Stole $2 Million: The CoinStats Breach Story

Crypto portfolio handler CoinStats is still recovering from the recent security breach on its platform that cost some million dollars in crypto assets. For obvious reasons, CoinStats had to shut down their services, resuming operations a few days later.

In a tweet on X, CoinStats CEO Narek Gevorgyan clarified some aspects of the breach, stating that it involved a company's employee.

CEO’s CoinStats Security Breach Explanation

As it turned out, the hackers infiltrated the Amazon Web Services (AWS) framework of CoinStats' network. The evidence further revealed that they manipulated the employee in question to download malicious content onto his work computer.

The above leverage gave the attackers access to CoinStats' servers, compromising all crypto wallets created on the platform and looting all the user crypto tokens. As previously stated, users with wallets linked to CoinStats and CEXs were not victims of this attack.

Gevorgyan expressed disappointment in the tragedy that struck the crypto portfolio manager platform, expressing his dismay, "What a week it's been…Seeing all this happen to something you've worked hard on for six years is tough, especially since it occurred because of a secondary feature," he lamented.

Affected Users Compensatory Package

The CoinStats CEO further offered consolation to the platform's users whose crypto assets were lost to the hacking incident, assuring them of the company's support and hinting at possible compensatory packages. "I empathize with those who lost money; I'm sure their situation is just as difficult. CoinStats will definitely support the victims of the hack, and we've been discussing options internally,” stated Gevorgyan in his tweet.

Notably, investigations into the CoinStats security breach are ongoing, and the crypto portfolio manager anticipates conclusive information from law enforcement to draft a full review of the case.

Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence before making any trading or investment decisions.

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