CoinsPaid Resumes Operations After Losing $37.2 Million in Cyber Attack
The popular Estonian crypto payments gateway provider, CoinsPaid, has continued operating following a cyberattack on July 22, 2023.
The malicious attack resulted in the theft of $37.2 million in cryptocurrency, forcing the company to suspend operations for 4 days. However, CoinsPaid reassured its clients that their funds were unaffected and fully available. According to the company, the attack affected only the platform’s availability and revenue.
CoinsPaid CEO, Max Krupyshev, reacting to the attack, said:
After the partial downtime, our services are getting up and running one by one in the new secure environment. We expect it to take a few more days to sort out minor details and ensure the system works smoothly.
Recall that the majority of CoinsPaid’s clients are online casinos working on the SoftSwiss platform.
The resumption of its activities was announced through a blog post on the official platform’s website. Additionally, the firm attributed the attack to the notorious North Korean hacking organization, Lazarus Group. Despite the significant financial loss, CoinsPaid believes the cybercrime group was after a larger target.
The statement reads:
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.
The company has launched an investigation to trace and identify the stolen assets using various blockchain analytics tools. CoinsPaid is also receiving assistance from companies such as Match Systems, OKCoinJapan, Binance, Chainalysis, ValkyrieInvest, Staked.us, and Crystal in the ongoing investigation. The Estonian law enforcement agency also received an official report three days after the attack and has joined in the tracking effort.
Max KrupyshevCoinsPaid will recover and continue to deliver first-class, innovative payment solutions despite the incident. We have no doubt that the hackers won’t escape justice.
Max Krupyshev
While the company has not presented any concrete evidence linking the North Korean group to the attack, the incident reportedly bears similarities to Lazarus’ mode of operation. Other victims of the group include Alphapo ($23M), Atomic Wallet ($100M), Axie Infinity ($625M), and Sony ($81M).
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