CoinStats halts user activity following security breach

The CoinStats crypto portfolio app has temporarily suspended all user activities after falling victim to a security breach over the weekend. Cybercriminals lured users into clicking malicious links by falsely promising rewards worth 14.2 ETH (approximately $48,128). The breach affected 1,590 crypto wallets, representing 1.3 percent of CoinStats’ total wallets.

CoinStats confirmed the hack on June 22 via its X handle, noting that the attack primarily targeted iOS users. A fraudulent message was sent to users, claiming they had won 14.2 ETH from a pool of 200 ETH. The message directed recipients to enter their AirScout wallets, which led to the eventual draining of funds. CoinStats reported that private keys stored on its servers were compromised, suggesting that hackers might have accessed internal systems to generate user wallets.

The exact amount of stolen funds remains unknown. CoinStats has released a list of compromised wallet addresses and is conducting an internal investigation. The company plans to resume app operations after completing the probe but has not disclosed details about the involvement of law enforcement authorities. CoinStats intends to update affected users in the coming days, although there is no current information regarding compensation for the victims.

The CoinStats breach is the latest in a series of cyberattacks targeting the crypto sector. In May 2024, over $473 million (roughly Rs. 3,950 crore) worth of cryptocurrencies were lost to hacks and rug pulls across 108 incidents, according to security service provider Immunefi. Over the same weekend, Turkish crypto exchange BtcTurk also experienced a hack, with several of its hot wallets accessed and crypto stolen. Binance is assisting BtcTurk in its investigation and has frozen $5.3 million (roughly Rs. 44 lakh) linked to the attack.

CoinStats, a widely used crypto portfolio app, is working to address security breaches and ensure the safety of its users’ assets as the crypto sector continues to be a prime target for cybercriminals.