CoinEx’s troubles rise as hacked funds cross $50 mln

  • CoinEx continued to suffer from its security breach, as hackers exploited the exchange further.
  • The exchange suspended deposits and withdrawals in response.

On 12 September, crypto exchange CoinEx found itself the target of a cybersecurity breach. This breach affected multiple wallets, including those holding Ethereum [ETH], TRON [TRX], and Polygon [MATIC] tokens. However, the situation escalated as the number of stolen funds continued to rise.

The plot thickens

According to SlowMist, the amount stolen from CoinEx reached a staggering $54 million on 13 September, underlining the magnitude of the attack. Responding swiftly, CoinEx took the proactive measure of suspending both deposits and withdrawals.

The exchange also made a strong commitment to fully compensate all users impacted by this security breach.

One particularly concerning aspect of this hack was the unauthorized access to data from an ENS domain. This breach of sensitive data emphasized the severity of the intrusion and the potential risks associated with it.

Interestingly, most of the tokens that were stolen did not experience significant drops in their market prices. However, one token, BRG, witnessed a substantial decline in value, which raised concerns within the cryptocurrency community.

The team behind BRG, known as the Bridge Oracle team, took immediate action to address the issue. They publicly called upon CoinEx to find a solution and compensate the community members who were affected by the theft of 669,487,946 BRG tokens.

CoinEx responds

In response to the hack, CoinEx clarified that it had swiftly formed a dedicated investigative team. Preliminary assessments revealed that unauthorized transactions involving cryptocurrencies such as ETH, TRON, and MATIC had occurred.

The exchange further promised 100% compensation for any losses to users due to this breach. Furthermore, to enhance security measures, the exchange temporarily suspended both deposit and withdrawal services. These services would only resume after a thorough and comprehensive security review had been completed.

After the breach, additional tweets disclosed the addresses and wallets used by the hackers. As of the latest information available, the distribution of the stolen assets included:

At press time, 97% of all withdrawals occurring on centralized exchanges were happening through CoinEx, according to Arkham intelligencce’s data.

Screenshot 2023 09 13 at 11.33.24 AM

Source: Arkham Intelligence

CoinEx’s thorough and transparent response to the hacking incident aimed to instill confidence among its user base. Nevertheless, the event serves as a stark reminder of the ongoing security challenges within the cryptocurrency industry.

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