CoinSpot, an Australia-based exchange, has been flagged for possibly falling victim to an exploit, according to blockchain analyst ZachXBT.
The analyst particularly points to two seemingly connected transactions, where two of CoinSpot’s wallets lost over 1,282 ETH, valued at approximately $2 million, in just 5 minutes.
ZachXBT, known for blockchain investigations, highlighted these transactions as evidence of CoinSpot’s potential vulnerability.
In one transaction, a presumed attacker received a transfer of 1,262 ETH from CoinSpot’s wallet. The second transaction involved sending 20.99 ETH to the same address.
According to Etherscan data, the recipient exchanged these coins for wrapped bitcoin, USDC, and USDT, using the smart contracts of Uniswap, THORchain, and WBTC.
So far, CoinSpot has not commented on the incident. The exchange, founded in 2014, had maintained a record without major reported hacks, although in December 2021, its users fell victim to a phishing attack.
CoinSpot is Just Another Victim of Hackers
Concerns about security on exchanges are always a recurring topic in the industry.
CoinSpot, on its website, claims to follow the “industry best practices by securing the vast majority of assets in highly secure offline locations.”
However, this potential incident could shed light on possible weaknesses in its security measures.
ZachXBT, through his findings, highlights the importance of increased vigilance and security in the ecosystem.
The fact that two CoinSpot wallets lost $2 million in a short period emphasizes the need for greater protection and preventive measures in the cryptocurrency ecosystem.
Individuals who find various ways to penetrate the security of blockchain systems cause the loss of billions of dollars every year.
For example, in the first quarter of 2022, hackers made off with around $1.3 billion, and by the fourth quarter of that year, the sum stolen by cybercriminals reached $900 million.
These attacks not only pose a problem due to the actual loss of capital for users and platforms but also undermine the trust in blockchain and hinder its path to widespread adoption.
After this incident, CoinSpot will need to strengthen its systems and improve its security measures to protect users’ assets and maintain market integrity.
