Crypto Exchange CoinSpot Faces $2.4M Hot Wallet Hack: Private Keys Compromised

Crypto Exchange CoinSpot Faces $2.4M Hot Wallet Hack

LUCKNOW (CoinChapter.com) — Australian crypto exchange CoinSpot fell victim to a $2.4 million hack. The breach is suspected to stem from a “probable private key compromise” affecting at least one of CoinSpot’s hot wallets.

Blockchain sleuth ZachXBT revealed two transactions that entered the alleged hacker’s wallet on his Telegram channel on 8 November. Subsequently, the funds were funneled into the Bitcoin network through THORChain and Wan Bridge.

CertiK, a blockchain security firm, confirmed that the exploit likely resulted from a “probable private key compromise” on CoinSpot’s hot wallet. Its investigative data also disclosed that 831 ETH was swapped for Bitcoin through THORChain and sent Bitcoin across four different wallet addresses within 10 minutes.

Additionally, Etherscan data revealed a transaction of 1,262 Ether, equivalent to $2.4 million, entered from a known CoinSpot wallet to the alleged hacker’s wallet.

The alleged hacker stole 1,262 ETH from a known CoinSpot wallet. Source: ZachXBT

The recipient of the 1,262 ETH engaged in strategic transfers, exchanging 450 ETH for 24 Wrapped Bitcoin (WBTC) via Uniswap.

Transaction details of the alleged attackers’ wallet. Source: DeBank

BTCScan data revealed that the owner of the four Bitcoin wallets transferred ill-gained BTC to multiple new wallets. Hackers usually use this tactic to make the tracking process more complicated.

CoinSpot currently holds the position of Australia’s largest exchange, with around 2.5 million users. The platform operates under the regulation of the Australian Transaction Reports and Analysis Centre, having obtained an Australian Digital Currency Exchange License from the financial watchdog.