In a significant security breach, crypto exchange CoinEx has incurred losses totaling $43 million across five prominent blockchains, including Ethereum, TRON, and Bitcoin. However, the exchange’s swift response aims to secure user assets and provide full compensation to affected parties.
How the Hack Happened
The breach was initially detected by the exchange’s risk control system on September 12, 2023. It identified abnormal withdrawals from hot wallet addresses. Notably, the unauthorized transactions primarily involved Ethereum (ETH), TRON (TRX), and Polygon (MATIC).
CoinEx acted swiftly in response to the security breach to mitigate potential damage and secure user assets. The exchange promptly suspended deposit and withdrawal services, ensuring that users’ holdings remained safe.
Loss Breakdown by Blockchain
According to monitoring by PeckShield, the losses incurred by each blockchain are as follows:
- Ethereum (ETH): $19 million
- TRON (TRX): $11 million
- Bitcoin (BTC): $6.4 million
- Bitcoin Cash (BCH): $6 million
- Polygon (MATIC): $295,000
CoinEx has been diligent in reassuring its users that their assets remain secure. Importantly, the affected funds represent only a fraction of the exchange’s total assets. As a commitment to its users, CoinEx has pledged to provide full compensation to those affected by the breach, covering 100% of their losses.
CoinEx ‘s Investigation and Next Steps
In response to the breach, CoinEx has taken several proactive measures:
- Formation of a Dedicated Investigation Team: The exchange has set up a specialized team to investigate the security breach thoroughly.
- Identification of Suspicious Wallet Addresses: CoinEx has identified and isolated suspicious wallet addresses associated with the hacking incident.
- Collaboration with Blockchain Projects: The exchange is actively collaborating with impacted blockchain projects to develop solutions and further enhance security.
CoinEx has also called upon relevant projects and institutions to assist in freezing the wallet addresses linked to the malicious attackers.
Conclusion
The CoinEx hack is a significant event in the crypto space, but it is important to remember that the exchange is not the first to be targeted. In recent years, there have been a number of high-profile hacks, including those at Bitfinex, Mt. Gox, and Poly Network.
Despite these setbacks, the crypto industry has continued to grow and evolve. Security measures are constantly being improved, and exchanges are becoming more resilient to attack.
Disclaimer: The information in this article is not investment advice from CryptoChill. Overall, cryptocurrencies always carry many financial risks. Therefore, do your own research before making any investment decisions based on this website’s information.
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