Crypto Sleuth ZachXBT Uncovers Alleged $2 Million Exploit on CoinSpot

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Key takeaways:

  • Blockchain analyst ZachXBT flags questionable transactions from Australian exchange CoinSpot’s wallets.
  • The reported transactions raise concerns as they total $2 million, indicating potential suspicious activity on the exchange.

In a recent development, cryptocurrency investigator ZachXBT has brought attention to a potential exploit involving the Australian crypto platform CoinSpot. The incident allegedly resulted in a loss of over $2 million worth of Ether. This blog post delves into the details of the reported exploit and its subsequent impact on CoinSpot.

According to ZachXBT’s findings shared in an early Thursday morning Telegram post, attackers targeted CoinSpot’s hot wallet in a two-step exploit. The assailants successfully drained funds from the wallet through two separate transactions. The first transaction involved a significant amount of 1,262 ETH, while the second drained 20.99 ETH. Both transactions were directed to the same recipient addresses.

Subsequently, the same address received 20.99 ETH. According to Etherscan data, the attacker then proceeded to exchange the acquired ETH for wrapped bitcoin, USDC, and USDT using Uniswap, THORChain, and the WBTC smart contract.

Founded in 2014, CoinSpot has been a relatively stable cryptocurrency exchange, with no major reported hacks until this incident. 

As per Etherscan data, the 1,262 ETH drained from CoinSpot’s wallet amounts to approximately $2.4 million. Following the exploit, the alleged hacker engaged in a series of transfers and swaps. Notably, the hacker exchanged 450 ETH for 24 Wrapped Bitcoin through Uniswap and 831 ETH for Bitcoin via THORChain. The hacker also converted some of the stolen ETH into USDC and USDT.

An examination of Bitcoin Explorer BTCScan data revealed that the hacker directed the Bitcoin to numerous wallets, subsequently breaking it down into smaller increments. This tactic is commonly employed by attackers to complicate the tracking process, as stolen funds are divided into more manageable and less traceable amounts.

The reported exploit on CoinSpot raises concerns about the security of cryptocurrency exchanges and underscores the ongoing challenges in safeguarding digital assets. As investigations unfold, the crypto community awaits further details on the incident and the potential implications for CoinSpot and its users. Stay tuned for updates on this developing story.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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