Security incident prompts Coinsbuy to announce $100K bounty for hackers' identification
Following unauthorized withdrawals, Coinsbuy reimbursed all impacted users from company reserves, as blockchain analysts estimate losses exceeded $7.9 million.
On Sunday, cryptocurrency payment service Coinsbuy allegedly experienced wallet breaches totaling over $7.9 million in digital assets stolen from both the Ethereum and TRON networks.
Based on information shared via Telegram by blockchain detective SpecterAnalyst, the perpetrator initiated the conversion of pilfered assets into Monero using various exchange platforms, though the exchange service ChangeNOW managed to successfully freeze assets worth six figures.
In response to the security breach, Coinsbuy implemented a temporary suspension of both deposit and withdrawal functionality before eventually reinstating normal operations, SpecterAnalyst reported. The blockchain investigator pinpointed three distinct wallet addresses connected to the compromised funds, comprised of a pair of Ethereum addresses alongside a single TRON address.
Registered as a Panamanian entity, Coinsbuy operates as a cryptocurrency payments solution provider that delivers business clients the necessary tools to receive, hold, transfer and trade virtual currencies.
Coinsbuy covers client losses, offers $100K reward
In an official statement provided to Cointelegraph, Coinsbuy acknowledged the security breach that occurred on Aug. 9, revealing that multiple platform wallets experienced unauthorized fund removals. According to the company's statement:
All affected client funds have been fully covered by Coinsbuy from our own reserves, so our users have not experienced any financial losses. The platform is back to operating normally, with all services fully available.
While the company continues to examine the breach, it stated that technical specifics will remain confidential until its investigation concludes and all conclusions have undergone verification. Coinsbuy neither confirmed nor refuted the estimated loss amount of $7.9 million reported by analysts.
Additionally, Coinsbuy announced a bounty program offering $100,000 to anyone providing intelligence that results in identifying the attackers, alongside an extra financial incentive for assistance in retrieving the compromised assets.