Lazarus Group Suspected in CoinsPaid Hack Worth $37 Million

The payments service CoinsPaid возобновил операции after a $37 million hack on July 22. The developers suspect involvement of the North Korean Lazarus Group.

Representatives said that client funds were not affected, but the breach affected the platform’s availability and revenue.

«Lazarus probably expected the attack on CoinsPaid to be more successful. In response to the breach, the company’s dedicated team of experts has worked tirelessly to bolster our systems and minimise the consequences. The security measures and procedures allowed the platform to prevent a larger loss of funds», — says in the firm’s statement.

In the wake of the attack, the platform immediately launched an investigation to track and tag the stolen funds. The project is assisted by Crystal, Chainalysis, Match Systems, Valkyrieinvest, Staked.us, OKCoinJapan and Binance.

The firm has also filed a police report. According to CoinsPaid CEO Max Krupyshev, it will take several more days to restore all project systems.

Analysts at the firm noted that the Lazarus Group allegedly is responsible for hacks at other crypto companies, including the sidechain Ronin, the wallet Atomic Wallet, the platform Alphapo and the cross-chain bridge Horizon.

In the near future, CoinsPaid will host a “round table” with all victims of North Korean hackers to announce a new initiative aimed at minimising and preventing similar attacks in the future.

Earlier in July, an unknown actor drained $1.5 million from the DeFi protocol Rodeo Finance through oracle manipulation.

In the same month, the attacker attacked the lending protocol EraLend, stealing crypto assets worth $3.4 million.

In the first half of 2023, the crypto industry faced 395 breaches, losing around $479.4 million as a result.