Crypto Payment Gateway Hacked
Tallinn, 26 July 2023
On July 22nd, CoinsPaid experienced a hacker attack, resulting in the theft of USD 37.3M. We suspect Lazarus Group, one of the most powerful hacker organizations, is responsible. Besides your favorite crypto payment processor, Its list of victims also includes the world’s top companies: Sony (USD 81M), Axie Infinity (USD 625M), Horizon Bridge (USD 100M), Atomic Wallet (USD 100M) and Alphapo (USD 23M).
We believe Lazarus expected the attack on our cryptocurrency payment gateway to be much more successful. In response to the attack, CoinsPaid’s dedicated team of experts has worked tirelessly to fortify all the systems and minimize the impact, leaving Lazarus with a record-low reward. Indeed, our security measures and procedures allowed CoinsPaid to prevent higher loss of funds.
As a user-driven crypto payment processor, the number-one priority, we ensured that customer funds stayed intact. Unfortunately, the attack influenced our platform’s availability, the favorite payment method was not available, and the company’s revenue was also impacted.
“After the partial downtime, our services are getting up and running one by one in the new secured environment. We expect it to take a few more days to sort out minor details and ensure the system works smoothly”, underlines Max Krupyshev, CoinsPaid CEO.
CoinsPaid crypto payment gateway immediately initiated an investigation to track and mark stolen funds via various blockchain analytics tools. As a consumer-centric crypto payment gateway and active part of the community, we sincerely thank all users and enthusiasts for being considerate and proactive. Companies such as Crystal, Chainalysis, Match Systems, Valkyrieinvest, Staked.us, OKCoinJapan, Binance, and many more are aiding us with the investigation.
“CoinsPaid will recover and continue delivering first-class innovative payment solutions despite the incident. We have no doubt the hackers won’t escape justice”, added Max Krupyshev.
It is worth mentioning that crypto payment processor CoinsPaid also filed an official report with the Estonian law enforcement agency on July 25th and is committed to cooperating with the investigation process. As the world strives for trust, transparency, and reliability in the financial system, such incidents make each сrypto payment gateway even more secure. They enable the whole crypto industry to become more stable and efficient.
Within a few weeks, CoinsPaid will organize a round table with all the Lazarus victims to announce a new initiative aimed at minimizing and preventing such attacks in the future. We urge Binance, Kraken, Coinbase, Bitfinex, OKX, and other сrypto payment gateways and exchanges to participate in this vital process.
It should be mentioned that amidst the challenges, including security concerns, the world accepting digital currencies emerges as a beacon of hope for the industry. CoinsPaid continues its commitment to enabling businesses to accept cryptocurrencies seamlessly. For commerce platforms, it is huge that modern payment gateways offer a possibility of a real time transaction.
In a world transitioning from traditional fiat currencies, crypto transactions showcase adaptability and inclusivity, besides being a much faster and safer option than credit card payments. As payment gateways typically play a crucial role in ensuring secure and efficient transactions, the recent security breach has reinforced the importance of robust payment processing systems of the future.
CoinsPaid, as a leading entity in the crypto payment processing arena, enables merchants to accept cryptocurrency payments securely. One notable feature of CoinsPaid is its facilitation of payments for goods and services through a business crypto wallet. The concept is similar to everyday crypto wallets that allow users transactions from peer to peer using wallet addresses or a QR code option.
CoinsPaid’s dedication to maintaining the integrity of the crypto industry highlights the need for continuous collaboration and innovation within the sector. The unfortunate incident has spurred us to enhance its security measures further, and the upcoming round table with industry leaders aims to forge a united front against such threats. The commitment to enable businesses to accept cryptocurrency payments remains unwavering, contributing to the resilience and growth of the crypto payment ecosystem.