Crypto App CoinStats Hit By Security Breach, User Funds Potentially Exposed

Popular crypto portfolio tracker CoinStats has suffered a security breach that exposed users’ wallets and sent fraud notifications to their mobile devices, causing the company to take the drastic step of shutting down the platform entirely while it investigates the incident.

The breach, which was confirmed by CoinStats on its official social media channels, compromised an unconfirmed number of wallets created by users within the app. CoinStats urges all users who have created wallets on the platform to immediately transfer their cryptocurrency holdings to minimize potential losses.

The exact number of affected users is still being investigated, but CoinStats is urging all wallet users to move their funds to a safe location as soon as possible, the spokesperson said.

Phishing scams lure users with fake rewards

Security breaches are highly Phishing scamsCoinStats users, especially those on iOS devices, received a notification congratulating them on winning a large amount of cryptocurrency, specifically 14.2 ETH (Ethereum). Clicking on the notification may have led users to a malicious website aimed at stealing their private keys and emptying their wallets.

These scams are becoming more and more common, as hackers exploit users’ excitement about the possibility of instant profits in the cryptocurrency world. It’s important to be wary of unsolicited messages, especially those promising rewards or demanding urgent action.

The total cryptocurrency market cap is currently $2.29 trillion. Chart: Trading View

Transparency concerns cloud the issue

CoinStats claims that the breach only affected internal wallets created within the app. The company has assured users that externally connected wallets and wallets stored on centralized exchanges (CEXs) are safe. However, some users have reported fraudulent transactions on external wallets as well, casting doubt on CoinStats’ claims.

The company has also been criticized for its lack of transparency. The full extent of the damage, including the number of wallets that were compromised and the total amount of crypto stolen, is still unknown. CoinStats has promised a detailed report on the incident but has not said when it will be released.

The CoinStats breach is a stark reminder that cybersecurity threats in the cryptocurrency industry are evolving. As the industry continues to grow, so too does activity from malicious actors targeting users’ funds.

Featured image from Mashable, chart from TradingView

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