CoinsPaid Crypto Payment Platform Hacked for $7.5 Million
Date: 2024-01-08 Author: Dima Zakharov Categories: BUSINESS
Security Breach Strikes CoinsPaid
CoinsPaid, a prominent cryptocurrency payment platform, recently suffered its second significant security breach in just half a year. The breach led to the theft of approximately $7.5 million worth of cryptocurrency. The illicit transactions were discovered and reported by Cyvers, a specialized Web3 security team.
The Attack Details
On January 6th, Cyvers' artificial intelligence system detected several unusual transactions. The cybercriminal conducted multiple operations, converting $6.1 million into Tether (USDT), Ethereum (ETH), USD Coin (USDC), and CoinsPaid's native token, CPD.
The attacker then moved the funds to external accounts (EAO) and various cryptocurrency exchanges, including MEXC, WhiteBit, and ChangeNOW. Subsequently, the hacker siphoned an additional $1 million through unconfirmed transactions involving Binance Coin (BNB), bringing the total stolen amount to $7.5 million.
CPD Token Plummets
Following the breach, the price of CPD token plummeted by more than 30% within a day. Currently trading at $0.0006, the token's value had been at $0.001 just the day before.
However, CPD token had been experiencing a continuous decline throughout the past year, losing 97.5% of its value over the last 12 months. Its market capitalization now stands at approximately $57,000, with a daily trading volume of $1,700.
Unfortunate 2023 for CoinsPaid
CoinsPaid had previously endured a massive security breach in July of the previous year, which was significantly larger in scale. The hackers, posing as service employees, managed to steal $37 billion and gain access to the platform's entire infrastructure. The CoinsPaid team later accused the Lazarus Group, a hacking group allegedly supported by North Korean authorities, of orchestrating the attack. The hackers had been attempting various breaches since March 2023 but resorted to social engineering when their earlier efforts failed.
Analysts estimate that Lazarus Group's activities in 2023 cost the cryptocurrency industry over $300 million, accounting for nearly 20% of the total damage inflicted by hackers on crypto projects.
