CoinEx suspends transactions after facing a security breach leading to loss of crypto assets such as XRP, Ethereum and Bitcoin to the tune of $54 million.
Crypto exchange CoinEx has fallen prey to a hacking incident, leading to the loss of assets worth over $54 million. Although official confirmation of the breach is pending, sources indicate that assets from ETH, TRON, and Polygon wallets may have been compromised.
Crypto commentator Colin Wu highlighted the development in X (formerly Twitter). Wu called attention to possible vulnerabilities in CoinEx’s hot wallets. He noted the loss of assets, specifically ETH, TRON, and Polygon, stating that the combined loss stood at $27.8 million.
Reports indicate that the platform responded promptly by relocating the affected assets to a cold wallet address.
Breaking: The crypto exchange CoinEX is suspected of being hacked, and so far its ETH, TRON, and Polygon hot wallets have lost more than $27.8 million. https://t.co/XpOGKKY1Tn
— Wu Blockchain (@WuBlockchain) September 12, 2023
The cold wallet with the address (0xf54…7E5d) presently safeguards a significant $89 million, with a major portion allocated to ETH ($51.7 million) and USD ($18.23 million).
Despite CoinEx maintaining a veil of silence, pundits within the crypto sphere strongly recommend fortifying security protocols to prevent prospective occurrences proactively.
In a subsequent report, Wu confirmed that losses have surged to $54 million in Bitcoin (BTC), Ethereum (ETH), XRP, and other cryptocurrencies.
The amount stolen from the CoinEx crypto exchange has risen to $54 million, according to SlowMist. CoinEx stated that it has suspended deposits and withdrawals and will fully compensate all users. https://t.co/hkBTQvbDSl pic.twitter.com/626xfOYyyd
— Wu Blockchain (@WuBlockchain) September 13, 2023
CoinEx Suspends Deposits And Withdrawals
In response to the attack, CoinEx has suspended both deposits and withdrawals while a thorough investigation into the hacking and subsequent cryptocurrency theft is underway. They have promised to compensate affected users.
To safeguard their digital assets from potential breaches on exchanges, experts recommend utilizing secure hardware wallets like Ledger, which store private keys offline.
The breach targeted CoinEx’s “hot wallets,” digital wallets connected to the internet, distinguishing them from the secure Ledger hardware wallet that remains impervious to online threats.
The cybercriminals responsible also managed to pilfer a range of other cryptocurrencies, including Solana (SOL), Polygon (MATIC), and Tron (TRX).
Despite this setback, CoinEx remains resolute in its growth trajectory. The latest is one of the most recent issues experienced by the exchange this year. The platform faced legal action from a New York state attorney for business registration violations.
The CoinEX hack adds to the slew of exploits faced by the crypto community in recent times. Notably, investors recently lost up to $700K in crypto assets, as hackers exploited Ethereum founder Buterin’s X account to share phishing links.
In addition, Curve Finance also lost crypto assets to the tune of $43 million in a massive hack that resulted in the exploiters draining funds from four liquidity pools associated with the protocol.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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