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.
What a week it's been.
— narek (@narek_gevorgyan) June 26, 2024
I've been working diligently on CoinStats for the last 6 years. We've experienced many highs and lows, but I believe we've created the best portfolio tracker on the market.
Our AWS infrastructure was hacked, with strong evidence suggesting it was done…
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.