In recent news about the CoinStats security breach, wallets linked to the hack have moved close to $1 million in Ether to Tornado Cash, a cryptocurrency mixer that focuses on privacy. CertiK, a blockchain security company, says that two wallets connected to the June hack moved a total of 311 ETH into Tornado Cash, which is about $959,000. One bank sent 211 Ether and another sent 100 Ether.
Crypto mixers like Tornado Cash hide transaction tracks by mixing funds that could be used to identify an individual with many other funds. This makes it impossible to tell where the funds came from or where they are going. Hackers who want to wash cryptocurrencies they got illegally often use these kinds of services.
Because of the security breach on June 22, CoinStats stopped users from doing anything after 1,590 cryptocurrency wallets were hacked. The company quickly took steps to contain the hack and reassured users that it did not affect centralized exchanges or connected wallets. Users who were affected were told to use exported private keys to protect their cash.
CoinStats Enhances Security Measures And Restores Platform Functionality
After that, on June 30, CoinStats started improving its transaction database and moving to a new platform that would make operations more reliable and efficient. The company also improved its systems and carefully checked them out.
As of July 3, CoinStats said that all of its platform’s features had been fully restored, letting users know that things were back to normal.
CEO Narek Gevorgyan said on June 26 that the breach was caused by an attack on the infrastructure that was reportedly started by tricking an employee into giving up information. Gevorgyan showed sympathy for the affected users and emphasized that help efforts and discussions about how to fix the problem were still going on.
Our AWS infrastructure was hacked, with strong evidence suggesting it was done through one of our employees who was socially engineered into downloading malicious software onto his work computer.
People in the community said they lost a lot of money after the breach. One wallet said it lost almost $9 million in Maker (MKR) coins. CoinStats is still investigating the incident. The company reiterated its pledge to enhance security measures for its updated infrastructure. Another update from the company on July 5 said that more information and ways to help sufferers would be shared soon.
