Coinsbuy Announces $100K Bounty Following $7.9M Hack

Coinsbuy Announces $100K Bounty Following $7.9M Hack

Coinsbuy, a Panama-incorporated crypto payments company, has offered a $100,000 reward for information leading to the identification of individuals responsible for unauthorized withdrawals totaling more than $7.9 million from its Ethereum and TRON wallets.

Bounty Details and Recovery Efforts

The company made the announcement after confirming that affected wallets were targeted on August 9. Although Coinsbuy did not confirm or dispute the estimated loss provided by blockchain investigators, it is promising a reward for tips that could identify the perpetrators. An additional, unspecified bonus will be provided for assistance in recovering the stolen assets.

Coinsbuy stated that all client funds affected by the incident have been fully covered from its reserves, ensuring that users did not incur any losses. The company also indicated that deposits and withdrawals have since resumed, with normal operations restored within the platform.

Investigation Into the Incident

Following the detection of the unauthorized withdrawals, Coinsbuy temporarily suspended its deposit and withdrawal services. Investigators, including the blockchain analysis firm SpecterAnalyst, reported that the hack resulted in significant losses across the platform’s wallets. Although the exact method used in the attack has not been disclosed, the investigation traced the stolen funds as they were moved through various exchanges.

Some of the stolen assets were reported to have been converted into Monero (XMR), a privacy-focused cryptocurrency, complicating the tracing efforts further.

Previous Incidents and Recovery Trends

Coinsbuy’s fixed identification bounty stands in contrast to other recent cases in the crypto space, where attackers have returned substantial sums of stolen assets after negotiating vulnerability bounties. Notably, an attack on TrustedVolumes in July resulted in approximately $2 million returned, with the attacker keeping an additional $2 million as a bounty.

The hack comes amid a troubling pattern in the cryptocurrency industry, with platforms reportedly losing around $110 million to hacks in July alone. Security firms have noted a 18% increase in confirmed and paid bug reports in the same month, signaling a heightened need for vigilance.

Moving Forward

Coinsbuy has committed to transparently sharing updates on the investigation’s findings but will not release technical details until all information is independently verified. As investigations continue, the exact amount of cryptocurrency recovered or frozen remains unclear.