Hong Kong-based cryptocurrency exchange CoinEx has announced that it suffered a security breach resulting in the theft of over $70 million worth of tokens. The exchange has provided further details about the incident, as well as its plans to recover the stolen funds and enhance its security measures.
According to CoinEx, a compromised private key for its hot wallets was identified as the root cause of the security breach. These hot wallets were used to store assets for deposits and withdrawals. As a result, the exchange suspended its withdrawal service and took immediate action to patch system vulnerabilities and transfer the remaining assets from the affected wallets.
CoinEx has emphasized that the stolen amount represents only a small portion of its total assets under management. The exchange has assured affected users that they will be fully compensated for any lost funds. In addition, CoinEx has opened communication channels with the hackers in an attempt to reach a resolution.
The exchange is currently working on building and deploying an entirely new and robust wallet system that can handle activities within the 211 chains and 737 assets. This will ensure better security and functionality for its users. CoinEx expects to resume withdrawals progressively within seven working days.
CoinEx is also conducting an investigation to identify the individuals or group responsible for the security breach. While a few blockchain security firms have attributed the hack to the North Korean Lazarus Group hackers, CoinEx said it is still in the process of verifying this information.
Notably, North Korean hackers have been involved in numerous high-profile cryptocurrency thefts in recent years. It is estimated that they have stolen approximately $340 million in cryptocurrency in 2023 alone. This number is expected to increase with the attribution of the CoinEx hack and another $41 million hack of the cryptocurrency gambling platform Stake.
The CoinEx incident serves as a reminder of the ongoing security challenges faced by cryptocurrency exchanges and the importance of robust security measures to protect user funds. CoinEx’s response to the security breach, including its commitment to compensating affected users and its efforts to rebuild its wallet system, demonstrates its dedication to resolving the issue and enhancing the security of its platform.
In conclusion, CoinEx has suffered a significant security breach resulting in the theft of millions of dollars worth of tokens. The exchange is actively investigating the incident, working on recovering the funds, and implementing enhanced security measures. Users affected by the hack will be fully compensated, and the exchange aims to resume normal operations within the next week. As the cryptocurrency industry continues to evolve, incidents like these highlight the need for constant vigilance and proactive measures to safeguard user funds.
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