Men Used Insider Knowledge to Hack Crypto Exchange Coins.ph, Say Investigators

The Philippines' Department of Justice (DOJ) has filed charges against two men, Vladimir Avdeev and Sergey Yaschuck, at the Taguig Regional Trial Court. These men are accused of orchestrating a sophisticated hack on the crypto trading platform Coins.ph.

The DOJ revealed that Avdeev and Yaschuck were previously employed as consultants at Betur, the firm managing Coins.ph. Both leveraged insider knowledge to breach the platform's security, and stole 12 million XRP coins in October 2023.

Extensive Charges Filed

The DOJ filed 23 charges against Avdeev and three against Yaschuck, reflecting the gravity and complexity of their alleged crimes. A thorough investigation by Coins.ph concluded that the hackers deeply understood the platform's network infrastructure and server systems. This insider knowledge was vital to executing the heist.

XRP Moved From Exchange to Exchange, Says Department

Prosecutors detailed how the stolen XRP was laundered across multiple platforms. The duo reportedly traded the coins for other tokens to muddy the waters and evade detection.

This elaborate scheme used platforms like OKX, WhiteBIT, SimpleSwap, and Fixed Float. Upon request from Coins.ph, WhiteBIT blocked several XRP transfers totaling 445,000 stolen tokens.

Cross-Chain Protocol and Non-Custodial Exchanges

Investigators also highlighted the use of the OrbitBridge cross-chain protocol. The alleged hackers used this protocol to convert part of the stolen cryptocurrency into other assets. They also attempted to move the stolen coins onto non-custodial exchanges, making the trail harder to follow.

"The DOJ said that citizens primarily use the exchange to make crypto-powered remittances. XRP accounted for almost 11% of the total volume of coins traded on Coins.ph on July 15, per CoinGecko data."

This high-profile case underscores the vulnerabilities even established platforms face and the lengths perpetrators will go to cover their tracks. It's a stark reminder to the crypto community of the ever-present risks in the digital currency landscape.