· 3 min read

CoinLoan Stops Hackers from Stealing Millions in Crypto

Disclaimer: The text below is a press release that was not written by Cryptonews.com.

The Team's Prompt Response Prevented Hacking of Thousands of Wallets

May 10, 2022, Tallinn: The number of major cryptocurrency scams has increased over the last few years. The CoinLoan fraud detection team’s timely and coordinated action prevented another big cryptocurrency theft from occurring in April 2022. What happened is as follows. 

An email with a link containing phishing scam content was sent to CoinLoan’s team member, promising to download the Trezor Suite update. Its true purpose was to steal the wallet’s seed phrase. The attentive team member immediately alerted the colleagues of the breach attempt. The team reported the IP address first so that all following domains would be blocked as soon as possible. The second step was to notify VirusTotal, a service that scans suspicious files for malware and informs the security community. CoinLoan’s team was able to prevent hackers from gaining access to funds of hundreds and probably even thousands of Trezor wallet users in this quick and effective way.

By exploiting a popular newsletter website, bad actors gained access to users’ data, so neither Trezor nor CoinLoan are at fault. However, this is not meant to point fingers but to encourage users and crypto companies to seek the highest-leveled security.

In response to a question regarding the team’s fraud detection efforts, Max Sapelov, CoinLoan’s co-founder and CTO, said: “We are immensely proud of our fraud detection team. However, this incident does shed light on the inherent risks associated with (cold) non-custodial wallets, including software, connections to third-party vendors, and possible insider leaks. In contrast, custodial wallets such as CoinLoan often implement a series of checks and holds which prevent fraudsters from a) gaining access and b) moving or withdrawing crypto in the event of a leak. As attacks such as this become more common, it is our hope that users intelligently weigh up the pros and cons of each type of wallet.”

Crimes involving cryptocurrency like the one CoinLoan's fraud detection team had to deal with are increasing at an exponential rate, which makes it necessary to tighten industry-wide security standards. 

As well as eroding trust and confidence in cryptocurrency investing, such attacks create the impression that it is risky and dangerous. The crypto industry continues to grow, which is why the highest-leveled security measures like CoinLoan’s are so important. It is crucial that cryptocurrency does not lose public support in a world where it is becoming more mainstream.

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Editorial contacts:

John Norris / Emma Dodds

Moonlight IQ

Email: [email protected]

Tel: +44 (0) 20 7250 4770

About CoinLoan

CoinLoan is an EU-licensed crypto business which started as a project in 2017. Its platform offers Instant Loans against cryptoassets, Interest Accounts in crypto, and Crypto Exchange. These services are rendered both to individuals and corporate entities with the exceptions as required by the applicable laws. We are striving to provide our clients with the highest security standards and insurance on assets to let both corporate and private customers benefit from the highest levels of protection.

Its highly-competitive loan and APY rates, transparent pricing, and 24/7 human customer support service have resulted in high customer retention and satisfaction. CoinLoan’s platform allows swapping and managing a comprehensive and growing range of cryptocurrencies, including its native token and fiat currencies.

The company is focused on continuous innovation through state-of-the-art technology and partnerships, bringing customers constant improvements and possibilities within the crypto world.

For more information, please visit us at https://coinloan.io/ and follow us on Twitter, LinkedIn, Facebook, Instagram, and Reddit.