CEO of CoinStats, Narek Gevorgyan, has elucidated key details of a recent security breach that led to the theft of tokens valued at $2 million from nearly 1,600 wallets associated with the platform. The cryptocurrency portfolio manager, endorsed by 6th Man Ventures and Hack VC, encountered a significant breach in its Amazon Web Services (AWS) infrastructure, resulting in the loss of valuable tokens.

Gevorgyan disclosed that the breach, allegedly linked to North Korea, exploited a vulnerability through manipulation of an employee at CoinStats who inadvertently installed malicious software on their work computer.

In a display of empathy towards the impacted individuals, Gevorgyan affirmed CoinStats' commitment to supporting the victims of the breach and ongoing internal discussions on suitable remedial actions.

Although the breach affected less than 1% of CoinStats users, compromising approximately 1,590 wallets, the company is awaiting official reports from law enforcement for a detailed assessment.

Reports indicated that the hackers targeted CoinStats users by sending deceptive notifications to iOS and Android users, enticing them with false incentives to access the CoinStats AirScout wallet. Clicking on these notifications redirected users to a deceptive website promoted through fraudulent CoinStats alerts within the app.

Established in 2017, CoinStats has raised considerable funding exceeding $3 million from investors such as Hack VC and Mike Duda's 6th Man Ventures. The organization's primary focus is now on rectifying the breach and fortifying security measures to safeguard its users from potential cyber threats.