CoinsPaid suffered a hacker attack last week that resulted in $37.3 million being stolen, but the company managed to protect customer funds by investigating the incident and rebuilding its operations in a new, more secure environment.
CoinsPaid successfully protected client funds from a massive hacker attack that resulted in the theft of $37.3 million. According to the company, client assets remain completely safe.
Immediately after the incident, CoinsPaid initiated an investigation to track and label the stolen funds using various blockchain analytics tools. To prevent future similar attacks, the company began actively cooperating with cybersecurity experts such as Crystal, Chainalysis, and Match Systems, as well as specialists from crypto companies like Valkyrie Investments, Staked.us, OKCoinJapan, and Binance.
CoinsPaid analysts revealed that one of the largest hacker organizations, Lazarus Group, also known as Guardians of Peace or Whois Team, was behind the attack. Major crypto projects such as Axie Infinity, Horizon Bridge, Atomic Wallet, and Alphapo are on the list of their victims.
The security measure taken allowed CoinsPaid to prevent significant asset losses and protect customer funds. Although the attack temporarily affected the availability of the CryptoProcessing payment gateway, its operation was restored in the new protected environment. Max Krupyshev, CEO of CoinsPaid, said that the core functions of payment processing had already been restored, but it’d take the company a few more days to sort out the minor details and ensure the system runs smoothly.
As part of the investigation, CoinsPaid is also working with Estonian law enforcement authorities and has provided them with an official report on the incident. According to Krupyshev, the company aims to build trust in the crypto industry, so it’s ready to provide transparent processes as part of the investigation. Besides, CoinsPaid will organize a round table with all the victims of Lazarus Group within a few weeks to announce a new initiative to prevent similar attacks and minimize the damage they cause.
CoinsPaid was recognized as the Best Crypto Payment Provider of 2023 by Malta’s Gaming Excellence Awards.