Hong Kong-based cryptocurrency exchange CoinEx has recently disclosed that hackers managed to steal more than $70 million worth of tokens. The exchange’s team is currently conducting an in-depth investigation into the incident while working on developing and implementing a new wallet architecture to restore functionality and compensate affected users.
Despite the significant amount stolen, CoinEx claims that the $70 million represents only a small percentage of its total assets under management. The exchange remains committed to fully compensating affected users for their losses and has assured them that their funds will be restored.
CoinEx is actively searching for the perpetrators behind the security breach. Several blockchain security firms have pointed to the North Korean Lazarus Group hackers as the likely culprits. To resolve the issue, CoinEx has taken the initiative to establish communication channels with the hackers in hopes of reaching a mutually agreeable solution.
Preliminary investigations conducted by CoinEx indicate that the root cause of the breach was compromised private keys for the exchange’s hot wallets. These wallets were used to store exchange assets for deposit and withdrawal purposes. In response, CoinEx has suspended its withdrawal service, patched potential vulnerabilities, and transferred the remaining assets from the affected hot wallets.
CoinEx aims to gradually resume its withdrawal service within seven working days, as it works tirelessly to build and deploy a new, robust wallet system capable of handling activities across multiple chains and assets. By doing so, the exchange hopes to enhance security measures and prevent similar incidents from happening in the future.
The CoinEx hack is just the latest in a series of high-profile cryptocurrency thefts attributed to North Korean hackers. Over the past few years, these hackers have targeted the cryptocurrency space, resulting in the largest thefts to date. For instance, the 2022 Axie Infinity Ronin Bridge hack saw over $650 million stolen. According to blockchain analytics firm Chainalysis, North Korean hackers have already stolen around $340 million in cryptocurrency this year, and this number is expected to rise following the CoinEx hack and a separate $41 million hack of cryptocurrency gambling platform Stake on September 4.
CoinEx’s recent security breach highlights the ongoing challenges faced by cryptocurrency exchanges in safeguarding users’ funds. The exchange’s commitment to compensating affected users and its proactive approach to resolving the issue with the hackers demonstrate its determination to prioritize customer protection. Nevertheless, this incident serves as a stark reminder that robust security measures must be implemented and regularly reviewed to ensure the safety of digital assets in the face of ever-evolving cybersecurity threats.