Crypto User Loses $27 Million to Malware Attack: Security Lessons for the Industry

Source: CryptoNewsNet Original Title: Crypto user loses $27 million to hackers in a malware attack Original Link: https://cryptonews.net/news/security/32093785/

Malware Attack Drains User’s Wallet

Multiple reports have revealed that an individual lost approximately $27 million in crypto assets across multiple blockchain networks in an attack that employed sophisticated malware automating the compromise of private keys, targeting wallets and backups.

According to reports from a blockchain security firm, the affected user had their wallets drained of about $27 million in total.

Attack Method

The blockchain security experts traced the largest transactions and determined the exploit resulted from scammers poisoning the victim’s computer after they clicked a malicious website link, which triggered an automatic download of an executable file.

Once executed, the malware scanned for critical crypto-related information, used keyloggers to capture passwords and private keys, and then automated the transfer of the data to the hacker.

Such poisoning scams are currently mostly effective on computers where private keys and sensitive data are stored, rather than iPhones. However, investigations are still ongoing and details remain speculative.

According to security experts, real poisoning attacks are not necessarily as complex or advanced as this one, and there is no need for widespread panic.

Recent Exchange Security Breaches

This attack is one of the most recent exploits targeting the cryptocurrency industry. Last month, a South Korean cryptocurrency exchange reportedly had $30 million worth of assets stolen from its Solana wallet due to a security weakness, resulting in the theft of various tokens including Official Trump, USD Coin, and BONK. Similar to this case, the weakness enabled private key inference.

All digital asset transactions were halted following the incident, which many suspect may have been conducted by the North Korean hacking collective Lazarus Group.

The exchange’s leadership acknowledged the breach as a direct result of inadequate security management and committed to protecting member assets. The private key vulnerability has since been fixed.

Security Response

The affected exchange intends to leverage its assets to cover customer losses due to the breach and has commenced an extensive security system review and wallet system restructuring, including tearing down its entire deposit address system and rebuilding from scratch.

All users are now required to generate new addresses before depositing again across every asset and network. This decision aims to eliminate any compromised keys or undiscovered vulnerabilities that remain in circulation.

The country’s Financial Supervisory Service is monitoring the process as part of its ongoing inspection.