Last Updated on 2 weeks by Ameer Hamza
The 2023 year has been interesting for the crypto world, filled with many frauds and phishing attacks. In September alone, several crypto exchanges have been victims of hackers. CoinEX, a major global crypto exchange, is one of the most recent platforms hackers have accessed.
How did the attack happen?
CoinEX is a comprehensive trading platform that supports over 700 cryptocurrencies and about 1,100 trading pairs. The exchange platform is known for upholding user asset security. Its resolve to maintain security as one of its core values led to the launch of the Proof of Reserve in 2022. This move was to ensure transparent user asset verification.
Last month, the top-tier crypto exchange platform posted about its excellent security infrastructure, reminding its users that it prioritizes protecting user assets to build trust. However, the theft of digital assets supporting the platform’s operations threatened all of its standards and ideals.
According to blockchain data, the CoinEX hack led to an estimated loss of up to $31 million. Though the company declined requests for comments, an investigation by PeckShield, a blockchain security firm, revealed that the CoinEX hack involved unauthorized transactions of ETH, Polygon, and TRON coins.
CoinEX lost about $19 million in ETH, $11.5 million in TRON, and almost $295,000 in Polygon. The crypto platform has assured its users that their assets were “secure and untouched,” since only their hot wallets were compromised. CoinEX added that the affected parties would receive 100% compensation due to the breach. The exchange platform also highlighted that the funds stolen were a small portion of its total assets.
Since the security breach, CoinEX has temporarily suspended withdrawals and deposit services to secure the remaining assets and prevent further unauthorized transfers.
Moves by the platform after the CoinEX hack
CoinEX is carrying out investigations into the breach. It has successfully identified and isolated the addresses linked to the attack. The exchange platform is also working to ensure that the attackers cannot move or cash out the stolen funds.
In addition, according to PeckShield, the remaining $72 million in assets have been kept in cold wallets for better protection. The company is also expected to give a comprehensive report regarding the incident.
What does this mean for the crypto world?
The constant attacks by hackers on crypto exchanges are becoming more frequent. Not long after the CoinEX hack, another centralized crypto exchange, the “Remitano” platform, was the victim of a hack. It lost about $2.7 million in digital currencies to the hackers.
It becomes vital that a comprehensive security portfolio is established for crypto exchanges to prevent hackers from gaining access. Furthermore, quick responses as soon as a hack is discovered can help mitigate losses and trace the source of the fraud.