CoinEx, a cryptocurrency exchange based in Hong Kong, has confirmed that a security breach led to the theft of over $70 million in tokens. The breach was made possible due to compromised private keys, which gave hackers access to the exchange’s hot wallets.
The exchange is currently conducting an investigation into the incident and is in the process of building a new wallet architecture to restore functionality and compensate affected users. Despite the significant amount stolen, CoinEx assures that this represents only a small fraction of its total assets under management.
The identity of the hackers is still under investigation, but some blockchain security firms suspect the involvement of North Korean Lazarus Group hackers. CoinEx has opened communication channels with the hackers in hopes of reaching a resolution.
In response to the breach, CoinEx suspended its withdrawal service, patched system vulnerabilities, and transferred remaining assets from the affected hot wallets. The exchange plans to resume withdrawals within seven working days.
The breach was first detected on Sept. 12 when unusual withdrawals were noticed from one of its hot wallets. The initial estimate of stolen funds was $27 million, but this figure has since doubled.
North Korean hackers have been targeting the cryptocurrency space for several years and are responsible for some of the largest thefts to date. According to Chainalysis, a blockchain analytics firm, North Korean hackers have stolen approximately $340 million of cryptocurrency in 2023 alone. This figure is expected to increase with the recent CoinEx hack and a $41 million hack of cryptocurrency gambling platform Stake.
In a recent update on their Twitter account, CoinEx has warned users about false claims stating that withdrawal services have resumed. They urge users to report such messages and refrain from engaging in these communications. The exchange is currently preparing to initiate the withdrawal function and will share details regarding website upgrades and maintenance later today. Specific dates, times, and arrangements for the resumption of withdrawals will be announced on the CoinEx website. Users are advised to stay updated on their announcements for the latest information.
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