The highly renowned digital currency exchange, CoinsPaid, has recently directed accusations toward the North Korean state-endorsed Lazarus Group. The blame was for the debilitating attack on their internal infrastructure that permitted the illicit siphoning of $37.3 million on July 22.
Lazarus Group in the Spotlight
CoinsPaid suspects Lazarus Group, a highly sophisticated hacker consortium, as the mastermind behind the assault. This suspicion was expressed through a public announcement on July 26, where they outlined their predicament without providing specifics of the theft’s modus operandi.
The repercussions of this cybersecurity breach were significant. It coerced the company into suspending its operations for a considerable period of four days. Subsequently, CoinsPaid affirmed their restoration to a more confined operational environment while assuring their clientele that their funds remained untouched.
Nevertheless, the attack did not leave CoinsPaid unscathed. Substantial harm was inflicted on the platform’s integrity and the organization’s financial health, evident from their financial statements.
The Expected Versus the Actual
Intriguingly, despite the staggering extent of the breach, CoinsPaid posits that the Lazarus Group was in pursuit of an even larger bounty. The company stated, “We deduce that Lazarus anticipated their onslaught on CoinsPaid to yield a significantly higher bounty. However, our dedicated team of experts worked relentlessly to bolster our systems and mitigate the damage, resulting in a record-low payday for Lazarus.”
To probe deeper into the breach, CoinsPaid filed a formal report with Estonian law enforcement three days post-hack. CoinsPaid also enlisted the assistance of blockchain security companies like Chainalysis, Match Systems, and Crystal. These entities aided CoinsPaid in the preliminary stages of investigation over the subsequent days.
CoinsPaid CEO’s Conviction
CoinsPaid CEO Max Krupyshev displays unwavering confidence in the eventual indictment of the Lazarus Group. In a recent statement, he asserted, “We harbor no doubts that the perpetrators will not elude justice.”
A blockchain security firm, SlowMist, suggests a possible connection between the CoinsPaid breach and the recent cyber-attacks on Atomic Wallet and Alphapo. These attacks resulted in losses of $100 million and $60 million, respectively.
While it remains uncertain whether Lazarus Group was the architect behind these attacks, the incidents are a stark reminder of the cybersecurity threats in cryptocurrency.
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