The Cryptocurrency payment provider CoinsPaid has been hit by a hack, resulting in a loss of $37.3 million on July 22. The company suspects the notorious Lazarus Group, a state-backed hacking organization from North Korea, to be responsible for the attack. This hacker’s group has a history of targeting high-profile companies and has been involved in several crypto-related hacks before.
Following the attack, CoinsPaid took immediate action, halting its operations for four days to assess the situation and fortify its systems against further damage. The company has now resumed operations in a new, more secure environment, according to a statement. Despite the breach, CoinsPaid maintains that customer funds remain unaffected.
CoinsPaid is back to processing after being hit by a hacker attack. Сlient’s funds were not affected and are fully available.
More details in our blog: https://t.co/XukI4ZTTLw pic.twitter.com/XjkKjjsluE
— CoinsPaid (@coinspaid) July 26, 2023
The crypto company’s CEO, Max Krupyshev, expressed confidence that the Lazarus Group will be held accountable for their actions, and the company is actively working with Estonian law enforcement in the investigation process.
He further reassures the crypto community that the company will continue delivering top-notch payment solutions while enhancing platform security to safeguard user assets from potential future attacks.
CoinsPaid Believes Lazarus Group’s Intentions Were Larger
The Lazarus Group is infamous for its sophisticated hacking campaigns and has a history of targeting the cryptocurrency and cybersecurity sectors through social engineering schemes. They use compromised accounts and malware-infected packages to infiltrate their victims’ systems.
Despite the significant amount stolen, CoinsPaid believes that the cybercrime organization had aimed for a much larger haul. It said,
“We believe Lazarus expected the attack on CoinsPaid to be much more successful. In response to the attack, the company’s dedicated team of experts has worked tirelessly to fortify our systems and minimize the impact, leaving Lazarus with a record-low reward.”
Moreover, CoinsPaid has received support from various blockchain security firms, including Chainalysis, OKCoinJapan, Binance, and more, who are aiding in the investigation to track and recover the stolen funds. Additionally, the company plans to organize a round table with other Lazarus Group victims to introduce new initiatives aimed at preventing such attacks in the future.
It is critical for organizations like CoinsPaid to relentlessly prioritize security and defend their clients’ funds from malicious attacks in a digital world where cybercriminals are becoming more aggressive. Cybercrime can be successfully combated, and public confidence in the financial system can be increased, with continued vigilance and cooperation within the crypto community.
