CoinStats Suspends Operations Due to Security Breach

CoinStats, a crypto wallet app, temporarily suspended operations due to a security breach that affected 1,590 wallets, or 1.3% of all users.

The company is investigating a fraudulent notification that some iOS and Android users received.

It is currently checking for irregularities. Users received a fake message with 14.2 ETH reward information, which directed them to enter a fake wallet on CoinStats AirScout. This notification was promoted via a “push” notification in the app. CoinStats is conducting an investigation and apologizes to users, promising timely updates.

The firm advises users with affected wallets to move their funds immediately using exported private keys. A link to the list of affected wallets has been provided.

The breach raises concerns about whether private keys are stored on the CoinStats server and about the security of the wallet generation process. Only wallets created by CoinStats were targeted, suggesting the presence of potential vulnerabilities.

CoinStats quickly terminated access to the application and is working to restore its functionality. This event serves as a reminder to users to be cautious of unexpected crypto rewards and to use hardware wallets to secure their funds.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.