Digital

Lazarus Group Suspected in $37.3 Million Hack on Cryptocurrency Payment Company CoinsPaid

Picture Source: BeInCrypto

CoinsPaid, a cryptocurrency payment company, recently fell victim to a hacking incident on July 22, resulting in a loss of $37.3 million. The suspected culprit behind the attack is the notorious Lazarus Group, a well-known hacker organization linked to the North Korean Government. This article delves into the details of the hack, the impact on CoinsPaid, and the persistent threat posed by the Lazarus Group in the realm of cybercrime.

CoinsPaid Recovers After Security Breach

Following the security breach, CoinsPaid has managed to restore its platform and resume processing transactions. The company’s robust security systems played a crucial role in mitigating the impact of the hack. While the Lazarus Group succeeded in breaching the platform, their rewards were considerably diminished due to the fortified defenses. Despite some downtime and an impact on company revenue, CoinsPaid reassured its customers that their funds remained unaffected.

CEO Max Krupyshev acknowledged that certain services experienced partial downtime and stated that it would take a few more days to resolve minor details and ensure the smooth functioning of the system.

Investigation and Legal Action

CoinsPaid immediately initiated an investigation into the hack, utilizing various blockchain analytics tools to trace the looted funds allegedly taken by the Lazarus Group. Additionally, the company has officially reported the incident to the Estonian law enforcement agency to bring the perpetrators to justice.

Lazarus Group’s Ongoing Threat

The Lazarus Group has long been involved in sophisticated hacking operations, having previously targeted platforms such as Axie Infinity, Horizon Bridge, and Atomic Wallet, resulting in cumulative losses worth billions. The group’s tactics involve spear-phishing, custom malware, and exploiting native operating systems, highlighting its status as a highly organized criminal organization.

Notably, the Lazarus Group’s involvement in laundering stolen cryptocurrency from Atomic Wallet through the Sinbad.io mixer resulted in over $100 million being laundered. The group has a history of employing various money laundering methods, including the use of Blender.

Furthermore, the Lazarus Group has been responsible for two significant heists: the $100 million Harmony Bridge hack and the $620 million Ronin Bridge theft, demonstrating the scale and audacity of their criminal activities.

Growing Concerns over Fraudulent Blockchain Games

As the hacking incidents continue, concerns have been raised regarding fraudulent blockchain games. Security researcher iamdeadlyz recently uncovered several such games that infect Windows and macOS systems with infostealers. These malicious programs can pilfer crypto wallets and steal sensitive data, such as passwords and browser information, posing a significant threat to users’ digital assets and personal information.

Read More: Americans Lost $2.57 Billion to Crypto Scams Last Year: Report

Conclusion

The recent hack on CoinsPaid, resulting in a loss of $37.3 million, points to the ongoing threat posed by the Lazarus Group, a well-known hacker organization linked to North Korea. Despite the impact on the platform’s availability and company revenue, CoinsPaid’s fortified security systems managed to minimize the rewards earned by the Lazarus Group. The company’s swift response in initiating an investigation and collaborating with law enforcement showcases the determination to hold cybercriminals accountable. As hacking incidents persist, vigilance and robust security measures remain crucial to safeguarding the cryptocurrency ecosystem and protecting users from emerging threats like fraudulent blockchain games.

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