Coinsbuy Confirms Security Breach as Investigator Reports $7.9 Million Stolen
Key Takeaways
- •Over $7.9 million was reportedly stolen from Coinsbuy wallets across Ethereum and TRON blockchains in an August 9 security incident.
- •The attacker attempted to launder funds through privacy-focused Monero, but ChangeNOW assisted in freezing a six-figure portion of the stolen assets.
- •Coinsbuy fully reimbursed all affected client funds from its own reserves and has restored normal platform operations.
- •The company offered a $100,000 reward for identifying those responsible, along with an additional bonus for help recovering stolen funds.
- •Coinsbuy has not confirmed or disputed the reported loss amount while its investigation continues and technical details remain undisclosed.
Wallets linked to cryptocurrency payments platform Coinsbuy were reportedly drained of more than $7.9 million across the Ethereum and TRON blockchains on Sunday.
According to a Telegram post from blockchain investigator SpecterAnalyst, the attacker began moving the stolen funds into Monero (XMR) — a privacy-oriented cryptocurrency designed to obscure transaction details — through exchanges. Monero's built-in privacy features, which hide sender, recipient, and transaction amounts, have made it a recurring tool for laundering stolen cryptocurrency, posing challenges for on-chain tracing efforts. The non-custodial crypto exchange ChangeNOW assisted in freezing a six-figure portion of the assets, SpecterAnalyst reported.
Coinsbuy temporarily suspended deposits and withdrawals following the incident before restoring both services, according to the investigator. SpecterAnalyst identified three addresses linked to the stolen funds: two Ethereum and one TRON address.
Source: SpecterAnalyst, Telegram
Incorporated in Panama, Coinsbuy is a cryptocurrency payments platform that provides businesses with infrastructure to accept, store, send, and exchange digital assets. The breach adds to a long line of cryptocurrency platform hacks that have plagued the industry, with cross-chain attacks spanning multiple networks complicating recovery and investigation efforts.
Related: BTCPay restricts remote Lightning access after attackers steal funds
Coinsbuy Covers Client Losses, Offers $100,000 Reward
Coinsbuy confirmed the August 9 security incident in a statement shared with Cointelegraph, saying that unauthorized withdrawals had affected several platform wallets. The company stated:
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.
The company said it is investigating the incident but will not disclose technical details until the investigation is complete and its findings have been verified. Coinsbuy did not confirm or dispute the reported $7.9 million figure.
Coinsbuy also offered a $100,000 reward for information leading to the identification of those responsible, along with an additional bonus for assistance in recovering the stolen funds.
