March 27, 2024
CoinSpot Allegedly Hit by $2M Hot Wallet Breach in Crypto
Latest Cryptocurrency News

CoinSpot Allegedly Hit by $2M Hot Wallet Breach in Crypto

CoinSpot, Australia’s prominent cryptocurrency exchange, recently experienced a substantial security breach amounting to $2.4 million. The breach was attributed to a likely compromise of a private key associated with at least one of CoinSpot’s hot wallets. This revelation surfaced through findings by blockchain investigator ZachXBT, who highlighted two transactions leading to the suspected hacker’s wallet. The alleged hacker, after receiving funds, took strategic steps to obfuscate the trail. They utilized THORChain and Wan Bridge to transfer the compromised funds to the Bitcoin network.

CertiK, a blockchain security firm, corroborated the exploit, specifying that a probable compromise of a private key in a CoinSpot hot wallet facilitated the unauthorized access. The illicit transactions involved 1,262 Ether, valued at $2.4 million based on current market prices. This sum originated from a known CoinSpot wallet and found its way into the wallet associated with the alleged hacker. Subsequently, the hacker engaged in a series of maneuvers, exchanging 450 ETH for 24 Wrapped Bitcoin (WBTC) via Uniswap. Shortly thereafter, the wallet owner converted 831 ETH into Bitcoin through THORChain, dispersing the resulting Bitcoin across four different addresses.

CertiK’s investigative data revealed that the owner of these Bitcoin addresses employed a tactic commonly observed in cyberattacks. By distributing the ill-gained Bitcoin across multiple wallets and further transferring smaller portions to new wallets, the hacker sought to complicate the tracking process and impede a swift response. CoinSpot, founded in 2013, currently holds the position of Australia’s largest cryptocurrency exchange based on reported user numbers, boasting a user base of approximately 2.5 million customers.

Notably, the exchange operates under the regulatory purview of the Australian Transaction Reports and Analysis Centre, holding an Australian Digital Currency Exchange License. This incident raises concerns about the security of even well-established and regulated cryptocurrency platforms in the face of evolving cyber threats.

Image by katemangostar on Freepik

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