CoinEx Exchange Hacked For $29 Million

CoinEx has fallen victim to a significant security breach, resulting in a staggering loss of at least $29 million. The breach, which occurred across three different blockchains, has sent shockwaves through the crypto community.

Crypto security platform Cyvers was quick to uncover the breach, prompting immediate calls for CoinEx to suspend all deposits and withdrawals to mitigate further damage. The compromised hot wallets were the epicenter of the suspicious transactions that led to this unfortunate incident.

The hack, which impacted a diverse array of tokens, unfolded as follows: the criminals made off with $18.12 million worth of assets on the Ethereum network, $8.5 million on Tron, and $291,000 on Polygon. This multi-blockchain attack demonstrates the audacity and sophistication of the perpetrators.

CoinEx has since raised concerns over several possible causes for the breach. These include “access control violations,” “private key leakage,” and even the potential for “rug pulling,” raising the unsettling possibility of an “insider job.” The exact nature of the breach remains under investigation.

Cyvers has provided valuable insights into the hackers’ activities, revealing that the culprits have begun exchanging their ill-gotten assets for Ethereum. Notably, one of the suspicious addresses has already transferred a substantial 3365 ETH, equivalent to $5.3 million, to an externally owned address, intensifying the urgency of the situation.

CoinEx’s Proactive Response to the Breach

CoinEx responded to the crisis by issuing a statement, confirming the breach while emphasizing that the precise extent of the losses is still uncertain. 

To demonstrate transparency and accountability, CoinEx has committed to providing a “comprehensive report” detailing the incident and a timeline of events. Additionally, they have enlisted the services of an investigative team to delve deeper into the matter, shedding light on how this breach could have occurred on their watch.