Crypto News: ZachXBT: CoinSpot Wallets Lose $2 Million in Crypto Hack!

Alleged Security Breach at Australian Crypto Exchange CoinSpot
Evidence of the Exploit
CoinSpot’s History and Security Practices
CoinSpot’s Response
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Startling developments have emerged in the world of cryptocurrency, as a suspected security breach at CoinSpot, a prominent Australian cryptocurrency exchange, comes to light. The revelation was made by ZachXBT, a well-known figure in the blockchain community renowned for his investigative work. According to ZachXBT, two wallets affiliated with CoinSpot fell victim to a cyberattack resulting in a staggering loss of over 1,282 ETH within a mere five minutes.

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ZachXBT says Australian crypto exchange Coinspot might have suffered a hack. Around $2 million of crypto lost.
— Whale (@WhaleChart) November 8, 2023

Alleged Security Breach at Australian Crypto Exchange CoinSpot

Reports have surfaced regarding a suspected security breach at CoinSpot, a notable Australian cryptocurrency exchange. The incident was brought to light by ZachXBT, a prominent blockchain investigator known for his work in the cryptocurrency community. According to ZachXBT, two wallets associated with CoinSpot experienced a significant loss of funds, amounting to more than 1,282 ETH, over the course of just five minutes.

Evidence of the Exploit

The suspected exploit is supported by specific transactions highlighted by ZachXBT. In one transaction, 1,262 ETH were transferred from one of CoinSpot’s wallets to an address believed to be controlled by the attacker. Subsequently, another transaction sent 20.99 ETH to the same destination. Etherscan data revealed that the recipient of these funds engaged in further activities, exchanging the ETH for wrapped bitcoin, USDC, and USDT using various smart contracts, including Uniswap, THORchain, and WBTC.

CoinSpot’s History and Security Practices

CoinSpot, which was founded in 2014 according to Crunchbase records, has maintained a relatively clean track record with no significant security breaches reported until now. However, it’s worth noting that in December 2021, CoinSpot users were targeted in a phishing attack, highlighting the ongoing security challenges faced by cryptocurrency exchanges and their users.

CoinSpot’s Response

As news of the suspected security breach emerged, CoinSpot had not provided an immediate response to inquiries from The Block. On its official website, CoinSpot asserts its commitment to upholding the highest security standards within the industry, with the majority of assets secured in offline storage locations.

The incident at CoinSpot and Chairman Gensler’s comments on FTX’s potential restart raise critical questions about the security and regulatory challenges confronting the cryptocurrency industry. Investigations into the alleged exploit are ongoing, and the crypto community is closely monitoring developments in both cases.

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