CoinEx Resumes Operations and Fortifies Security After $70 Million Hack

CoinEx is gearing up to recommence deposits and withdrawals, marking a pivotal turnaround more than a week after a $70 million breach due to compromised hot wallet private keys. The exchange is taking extensive measures to bolster security and protect user assets.

CoinEx has laid out a comprehensive strategy, with a primary focus on deploying a brand-new wallet system. This upgraded system is designed to accommodate the diverse needs of the 211 blockchains and 737 tokens that were supported by the exchange prior to the unfortunate hacking incident.

CoinEx Announces Resumption of Services

In an official statement released today, CoinEx has officially declared the reactivation of deposit and withdrawal services for an array of cryptocurrencies. This includes popular digital assets such as Bitcoin, Ether, Tether, USD Coin, and various other tokens. The restoration of services is slated to commence on September 21.

CoinEx is taking critical steps to enhance user security. As part of these efforts, the exchange will be updating deposit addresses for the listed tokens and generating new deposit addresses for its users. Users are strongly advised against depositing funds into old addresses, as this could lead to the permanent loss of assets.

Emphasizing caution and prudence, CoinEx has pledged to ensure the stability of its new wallet system. Accordingly, the exchange will gradually reinstate deposit and withdrawal services for additional assets in due course. It remains steadfast in its commitment to a 100% asset reserve policy, aimed at fortifying users against potential security threats.

Notably, CoinEx has been proactive in its response to the hack. Previous updates reassured users that their assets remained unaffected and that the CoinEx User Asset Security Foundation would step in to cover any financial losses incurred by users.

The Breach Unveiled

The breach was attributed to the compromise of private keys for certain hot wallet addresses. These hot wallets served as temporary storage for user deposits, withdrawals, and short-term asset holdings. The attackers managed to withdraw a staggering $70 million worth of cryptocurrencies before the breach was detected.

In the wake of this breach, CoinEx’s resolute response and commitment to user security highlight the importance of stringent security measures in the crypto space. As the exchange resumes operations, it stands as a testament to the industry’s resilience and ongoing efforts to safeguard digital assets in an ever-evolving landscape.