CoinStats, the app for managing crypto portfolios, has temporarily halted its operations due to a security incident. The breach impacted 1,590 wallets, representing 1.3% of all CoinStats Wallets, while connected wallets and centralized exchanges were unaffected. Additionally, CoinStats is investigating a scam notification received by some iOS and Android users.
As a long-time supporter of CoinStats, the author notes having limited funds in a wallet created circa 2022. These funds were withdrawn from the wallet, unconnected to external apps, about 1.5 hours prior to the scam notification. Unfortunately, funds from Ethereum and Polygon wallets are now with the attacker.
CoinStats mentioned that the list of affected wallets may change as the investigation progresses but expects no significant updates. Users with affected wallets are urged to transfer funds immediately using their exported private keys if they had been previously exported. CoinStats has provided a link to the list of affected wallets.
Scam Notification Promoting 14.2 ETH Prize to Users
The scam notification falsely informed users of winning a 14.2 ETH reward from an event with a 200 ETH prize pool. It directed users to log into the CoinStats AirScout wallet via a provided link, leading to a Drainer website. This deceptive scheme was disseminated through a CoinStats push notification and an in-app notification on the home screen. CoinStats is actively investigating and apologizes for any inconvenience, promising prompt updates.
Potential Causes of the Private Key Breach
CoinStats has not disclosed the attack’s cause publicly yet. Concerns arise regarding whether private keys were stored on their server and the randomness of app-generated wallets, as only CoinStats-generated wallets were targeted and drained. The ability of attackers to access the server and send malicious notifications suggests possible insights into the wallet generation process. Weaknesses in the random number generation during that period may have facilitated the compromise of private keys and user funds.
As of now, no wallets or API connections shared with the CoinStats portfolio application seem affected, though unconfirmed reports indicate drains on wallets connected for utilizing DeFi features. CoinStats swiftly suspended app access following the incident and continues to investigate.
Stay cautious regarding unexpected competitions or rewards in the crypto space and prioritize hardware wallets for securing critical funds.
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