Estonian Cryptocurrency Payment Gateway CoinsPaid Suffers Second Hack
Estonian cryptocurrency payment gateway CoinsPaid experienced its second hack in just six months, resulting in unauthorized transactions worth approximately $7.5 million. The breach was detected by web3 security firm Cyvers on January 6th. Irregular activity involving popular stablecoins USDT and USDC, as well as 97 million tokens of CoinsPaid’s native CPD token valued at $368,000, was identified.
Key Points
- CoinsPaid lost close to $7.5 million in the recent hack, marking its second breach in six months
- Cyvers discovered unauthorized transactions involving USDT, ETH, USDC, BNB, and CPD tokens on January 6th
- In July 2023, CoinsPaid suffered a $37 million hack attributed to the North Korean Lazarus Group
- The CPD token dropped 40% following the latest hack to $0.0006 per token
- CoinsPaid has not yet released an official statement regarding the recent breach
The attacker quickly transferred the funds out of CoinsPaid through various cryptocurrency exchanges including MEXC, WhiteBit, and ChangeNOW. Cyvers’ analysis revealed an additional $1 million in BNB was stolen, bringing the total losses to approximately $7.5 million.
Following news of the hack, CoinsPaid’s native token CPD experienced a 40% drop to $0.0006 per token as traders reacted to the compromised security of the company.
This incident occurred just six months after CoinsPaid suffered a $37 million hack in July 2023. The North Korean state-sponsored hacking group Lazarus gained access to CoinsPaid’s systems by socially engineering an employee through a fake job interview process.
Hot Take: CoinsPaid Faces Uphill Battle After Second Hack
CoinsPaid’s repeated security breaches, resulting in over $44 million in losses within six months, pose a significant challenge for the company to regain client trust. These hacks also highlight the inherent risks associated with centralized crypto platforms and hot wallets. With no official statement from CoinsPaid, users are left speculating about the future of the company.
Rival payment platforms will likely seize this opportunity to target CoinsPaid’s large user base and promote their own services. The lack of transparency and communication from CoinsPaid has frustrated customers awaiting further details. The coming days and weeks will be crucial in determining whether CoinsPaid can survive this double-hack calamity.
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