CoinEx Hack Results in $54 Million Loss, Heightening Concerns Within the Crypto Community

On September 12, 2023 CoinEx indicated a serious security breach. Hackers exploited vulnerabilities in hot wallet addresses that contained significant amounts of assets on networks like Ethereum, Tron, and Polygon. CoinEx quickly took action, flagging the unusual withdrawal patterns through their Risk Control System. A dedicated investigative team was formed right away.

From the very start, it was evident that unauthorized transactions were linked to Ethereum ($ETH), Tron ($TRX), and Polygon (MATIC), but the full scope of the damages remains to be evaluated.

Urgent Announcement: Security Breach at CoinEx – Immediate Measures in Progress

On September 12, 2023, our Risk Control System identified unusual withdrawal activity originating from several hot wallet addresses holding CoinEx's trading assets. Recognizing the serious nature of the situation, we…

— CoinEx Global (@coinexcom) September 12, 2023

CoinEx’s Efforts to Regain User Confidence Post-Breach

Following the breach, CoinEx acted swiftly to reassure its users about the security of their assets. The company emphasized that the impact of the breach was limited to a small portion of its overall assets. To restore trust, CoinEx decided to temporarily halt all deposits and withdrawals. They promised to conduct a comprehensive assessment before resuming services and committed to fully compensating all affected customers.

CoinEx didn’t stop at that. They went a step further by identifying and making public the suspicious wallet addresses related to the incident. These included multiple cryptocurrencies such as Ethereum, Ripple, Solana, Binance Smart Chain, Kadena, Bitcoin Cash, and Dagger. By sharing this information, CoinEx sought the assistance of the community to help identify and freeze any further questionable transactions.

How Big is the Damage?

Recent updates confirm a staggering $54 million loss, as per reports from SlowMist’s investigations that align with the losses outlined by PeckShieldAlert across various blockchains. Despite the massive scale of the industry, the lingering trust issues stemming from these breaches remain a significant cause for concern.

The amount lost in the CoinEx hack has reached an alarming $54 million, per SlowMist's analysis. CoinEx has announced the suspension of deposits and withdrawals but assures full compensation for all affected users. https://t.co/hkBTQvbDSl pic.twitter.com/626xfOYyyd

— Wu Blockchain (@WuBlockchain) September 13, 2023

CoinEx has committed to reimbursing impacted users entirely. The cryptocurrency community and other platforms are vigilantly watching the situation as CoinEx actively tackles the issue and strengthens its security protocols.

Update: Possible Links of North Korean Lazarus Group to CoinEx Hack

Cybersecurity analysis firm SlowMist has suggested that the recent breach at CoinEx might be tied to the notorious North Korean hacking group, Lazarus Group. Specifically, the hacker addresses 0x22…a98d and 0x75…Ac59 have been flagged as Stakecom Exploiters operating on the Binance Smart Chain and Polygon networks, respectively.

There’s growing speculation that aliases such as Alphapo Exploiter, Stakecom Exploiter, and CoinEx Exploiter may all represent different facets of this infamous North Korean hacking group.

🚨SlowMist Security Alert🚨

1/ @coinexcom Exploiter, @Stake Exploiter and #Alphapo Exploiter could potentially have connections to the North Korean hacking unit known as #LazarusGroup .

Here’s the rationale behind our assessment: https://t.co/IGNldb2ZZJ pic.twitter.com/SLGzSgbCis

— SlowMist (@SlowMist_Team) September 13, 2023

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