CoinStats Reports Security Breach, Urges Immediate Fund Transfer

CoinStats has issued a warning to its users following a security incident. The platform enables the users to create wallets and has informed the users who created wallets on CoinStats to transfer their funds as soon as possible. The security breach has led to the team sending a scam notification to users’ mobile devices.

Coinstats Scam Notification

CoinStats has revealed a security incident that led to the compromise of some wallets created within the app. The platform also informed the users that the externally connected wallets are safe. CoinStats advised its users to export their private keys and move their funds as a precaution to minimize possible losses.

The incident also included a phishing notification for iOS telling users that they have received a prize of 14. 2ETH in a rewards competition, which was later discovered to be a scam. Some of the users of Android have also complained that they also received similar notifications.

CoinStats has since pulled the platform offline for investigation and has put up a placeholder on its homepage with a promise of a more detailed report on the incident.

Some users complained about the ad for a fake website which tried to install a configuration program on iOS devices. This program is possibly intended to give the attackers a backdoor to the affected devices. However, the amount of damage caused by the security breach, including the number of users and funds compromised, is still unknown.

We are currently experiencing a security incident affecting wallets created directly within CoinStats; this does not impact externally connected wallets.

If you have your private key exported, move your funds ASAP.

— CoinStats (@CoinStats) June 22, 2024

CoinStats notified the community via their official X account, confirming the incident and urging the affected wallet users to act quickly. They assured the users that external wallets had not been affected and apologized for the disturbance.

Increasing Security Incidents in the Crypto Space

The CoinStats breach is among the recent security incidents that have occurred in the cryptocurrency industry. Latest, Binance CEO Richard Teng confirmed that the exchange will increase the protection level after the hack on BtcTurk. Binance has temporarily suspended more than $5. $3 million in stolen funds that passed through the exchange, proving the platform’s dedication toward protecting users’ funds.

To counter the attack, BtcTurk suspended all forms of cryptocurrency transactions including deposits and withdrawals. The hackers targeted the exchange’s hot wallets and impacted balances in ten cryptocurrencies. Despite this, BtcTurk assured its users that the majority of the users’ assets remain safe as most of them are stored in cold wallets.

CoinStats and BtcTurk are both conducting thorough investigations into their respective cases at the moment. CoinStats has assured users that they will be informed and a comprehensive breakdown of the breach will be provided soon. Likewise, BtcTurk is engaged in resolving the issue with the help of the concerned authorities to avoid a recurrence of the situation.

Read Also: Turkish Crypto Exchange BtcTurk Faces Cyber Attack, Wallets Compromised