CoinsPaid, a cryptocurrency payment gateway, has suffered its second security breach within the past six months. Cyvers, a Web3 security company, reported that they detected unauthorized transactions amounting to approximately $7.5 million.
On January 6, Cyvers’ artificial intelligence system identified multiple unusual transactions, resulting in the withdrawal of digital assets worth $6.1 million, including Tether (USDT), Ether (ETH), USD Coin (USDC), and CoinsPaid’s native token CPD.
As reported by Cyvers on X (formerly Twitter), the attacker converted around 97 million CPD tokens, valued at approximately $368,000, into ETH. Subsequently, the attacker transferred the funds to externally owned accounts (EOAs) and various cryptocurrency exchanges such as MEXC, WhiteBit, and ChangeNOW. CoinGecko’s data shows that CPD was trading at $0.0006 at the time, experiencing a 39.5% decline in 24 hours.
Further investigation by Cyvers revealed unauthorized transactions involving Binance Coin (BNB), amounting to more than $1 million, bringing the total stolen amount to nearly $7.5 million. CoinsPaid, an Estonian cryptocurrency payment processor, claims to have processed over 19 billion euros in cryptocurrency transactions but has not yet commented on this latest attack.
Notably, CoinsPaid suffered another security breach in July 2023, resulting in the theft of more than $37 billion. According to CoinsPaid, hackers employed a deceptive job interview tactic to deceive one of its employees. The employee responded to a job offer and inadvertently downloaded malicious code, granting the attackers access to CoinsPaid’s infrastructure.
In their post-mortem report of the 2023 hack, CoinsPaid attributed it to the North Korean state-backed Lazarus Group. They noted that the Lazarus Group had made multiple unsuccessful attempts to infiltrate the platform since March 2023 but switched to highly sophisticated and aggressive social engineering techniques, focusing on targeting employees rather than the company itself.
The Lazarus Group is suspected to be responsible for several cryptocurrency hacks in 2023. TRM Labs, a blockchain intelligence firm, reported that the group pilfered at least $600 million in cryptocurrency over the course of the year.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up