When one speaks about security in the crypto space, the name that often comes to mind is none other than the infamous North Korean hackers – Lazarus Group – who, recent reports suggest, were responsible for the major security breach at a well-known crypto exchange CoinEx.
On September 12, CoinEx experienced massive fund outflows to a previously dormant address. Alarm bells went off among security experts, apprehending a network hack, with loss estimates initially pegged at around $27 million. But as per SlowMist, a revolutionary blockchain security firm, the damages from this exploit have now crossed $55 million.
The Lazarus Group was identified following this hacking incident when they accidentally connected their address to previous hacking attacks on Stake and Optimism. In a compelling statement, the US Federal Bureau of Investigation (FBI) has posited that the Lazarus Group from North Korea was behind the recent $41 million hack on the crypto gambling site, Stake.
In a post-hack scenario, CoinEx Global moved quickly to reassure its investors that their assets are secured and pledged a full compensation to affected parties for their losses due to the breach. For added security, the exchange had momentarily held off deposits and withdrawals until the investigation was completed, whilst promising a detailed report about the incident in the future.
However, the Lazarus Group’s attack on CoinEx intensifies the mounting concern regarding the vulnerabilities and financial losses inflicted upon the crypto-verse due to scams, hacks, and exploits. Examining the scenario, cybersecurity firm CertiK reported that as of August 2023, about $1 billion has been lost from the beginning of this year, with $45 million claimed in August alone – all attributed to fraud and attacks.
CoinEx’s ordeal highlights the ever-evolving challenges of the crypto era and its ensuing safety concerns. As we go forward, it’s crucial for such institutions to implement more robust security measures and for users to exercise greater caution to prevent or, at the very least, limit similar events in the future.
Source: Cointelegraph
