Hong Kong’s cryptocurrency exchange, CoinEx, recently disclosed a security breach resulting in hackers making off with more than $70 million in tokens. CoinEx has been actively investigating the incident and is working on deploying a new wallet system to restore both user access and platform functionality.
While the exchange experienced significant losses, they reassured users that the stolen amount represents only a fraction of their total assets under management, and affected users will be fully compensated for their losses.
The preliminary investigation conducted by CoinEx suggests that the breach occurred due to compromised private keys linked to their hot wallets, which are typically used for cryptocurrency deposits and withdrawals. In response to the incident, the exchange temporarily suspended its withdrawal service, addressed system vulnerabilities, and moved remaining assets from the impacted hot wallets. CoinEx anticipates a gradual restoration of withdrawal services within seven business days.
Crypto Exchange CoinEx Loses $70 Million in Massive Security Breach
Despite ongoing investigations, the identity of the hackers remains uncertain. However, multiple blockchain security firms have suggested the involvement of North Korean “Lazarus Group” hackers.
Notably, the stolen funds’ initial estimation stood at $27 million, but this figure has since doubled, reflecting the seriousness of the breach.
North Korean hackers have targeted the cryptocurrency sector for several years and have been responsible for some of the most significant crypto thefts to date. In 2022, the Axie Infinity Ronin Bridge hack alone resulted in losses of over $650 million.
According to blockchain analytics firm Chainalysis, North Korean hackers have already stolen around $340 million worth of cryptocurrencies in 2023. The CoinEx hack, along with a $41 million breach of cryptocurrency gambling platform Stake on September 4th, is expected to push this figure even higher.