Tornado Cash

Polygon

Security

CoinPoker

Tornado

<p>The blockchain-based poker system CoinPoker’s hot wallet had been hacked on 8th November which caused the loss of nearly 2000 ETH, or around 2 million USD. These attacks targeted wallets or access to a wallet bypassing wallet safeguards, and funnelling money through multiple transactions in an organized manner, that targeted Ethereum, BSC, and Polygon.&nbsp;&nbsp;</p>   
<h2 class="wp-block-heading" id="h-flight-of-the-attack">Flight of the Attack</h2>   
<p>According to a <a href="https://cyvers.ai/coinpoker-hack-a-comprehensive-analysis-by-cyvers-pdf" target="_blank" rel="noreferrer noopener">detailed report </a>from Cyvers Alerts, the attack began with a $10K USDT transfer on Ethereum, likely to test the system's security. The hacker then launched 82 transactions in just 50 minutes, with each transaction not exceeding $25,000. This strategy helped avoid detection and made it harder to pinpoint the breach.</p>   
<p>By keeping transaction sizes small, the hacker managed to reduce the risk of being flagged while continuing to withdraw funds from the wallets.</p>   
<p>The <a href="https://coinpedia.org/beginners-guide/what-is-ethereum-the-comprehensive-guide/" target="_blank" rel="noreferrer noopener">Ethereum</a> and <a href="https://coinpedia.org/beginners-guide/what-is-polygon-network/" target="_blank" rel="noreferrer noopener">Polygon</a> bridged amounts went through Tornado Cash laundering whereas <a href="https://coinpedia.org/beginners-guide/binance-smart-chain-bsc/" target="_blank" rel="noreferrer noopener">BSC </a>directly deposited its amount to the mixer. This method of splitting transactions and laundering funds made it almost impossible to trace the stolen assets, complicating recovery efforts.</p>   
<h2 class="wp-block-heading" id="h-fireblocks-custodial-security-exposed">Fireblocks: Custodial Security Exposed</h2>   
<p>CoinPoker uses Fireblocks as its custodial solution, which includes security measures like multi-party computation (MPC) and Proof of Reserves. However, this attack exposed weaknesses in their system. Whether Fireblocks was responsible for the compromised wallet or another solution was used, it’s clear that more robust protection is needed.</p>   [post_titles_links postid="382873"]   
<h2 class="wp-block-heading" id="h-strengthening-hot-wallet-security">Strengthening Hot Wallet Security</h2>   
<p>This hack shows the importance of applying strong access controls and monitoring solutions to hot wallets. The use of incremental transfers and laundering techniques made the stolen funds nearly undetectable. Moving forward, custodians must implement better security practices and remain vigilant in monitoring wallet activities.</p>   
<p><strong>The CoinPoker hack serves as an important reminder for the crypto community about the need for better wallet security.</strong></p>

$2 Million Stolen in CoinPoker Hot Wallet Hack – Here’s How

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