CoinsPaid Faces Second Major Security Breach in Six Months

Digital Assets Payment Company Loses Millions

CoinsPaid, a company specializing in digital asset payments, confronts another significant security breach. This incident, occurring on January 5, led to the loss of approximately $7.5 million in cryptocurrencies. It's the second such event for the firm within a span of six months.

Detailed Analysis of the Hacked Cryptocurrencies

Hackers absconded with a variety of cryptocurrencies. This included 4.5 million USDT, 500 ETH, 106,000 USDC, 924,000 BSC-USD, 268.5 BNB, and 97 million CPD. The criminals converted these assets into Ethereum (ETH) and then moved them to external accounts on the Ethereum and BNB chains. They further dispersed the funds across various centralized exchanges, including MEXC, ChangeNow, and WhiteBit.

Cyvers Points to Inadequate Wallet Access Controls

Blockchain security firm Cyvers has identified the primary cause of this breach as inadequate wallet access control measures at CoinsPaid. This vulnerability was first highlighted in July 2023 by Cyvers, following a major theft involving the North Korean Lazarus group. Despite warnings, the security gap remained unaddressed.

Lazarus Group's Involvement Under Suspicion

The Lazarus Group, notorious for its hacking activities, is suspected to be behind this latest exploit. They are known for their attacks on various crypto platforms, resulting in massive losses. Their previous targets include Ronin Bridge, Harmony Bridge, and Atomic Wallet.

Rising Crypto Exploits in the New Year

The cryptocurrency sector has been facing a surge in security challenges as the new year begins. Several notable projects have fallen victim to hacks and exploits. Orbit Chain experienced an $81 million loss, while Radiant Capital and Gamma reported significant breaches, totaling nearly $100 million in losses in just the first week of 2024.

Despite previous warnings and incidents, CoinsPaid's repeated security lapses raise serious concerns about their commitment to safeguarding digital assets.