CoinEx Faces $28 Million Security Breach: User Funds Safe, Compensation Promised

Crypto exchange CoinEX becomes the latest victim of cyber attack as threat actors penetrate highly unauthorized sections to transfer Ethereum (ETH), TRON (TRX), and Polygon (MATIC) from its hot wallet. According to reports, the exchange on Tuesday observed “anomalous withdrawals,” and quickly instructed a special task force to investigate.

Later, it was estimated that about $28 million had been stolen from the platform. A blockchain security firm PeckShield also disclosed that the hackers made away with $31 million. According to them, $19M in ETH, $11.5 million in Tron, and $295k in Polygon were stolen

The remaining funds are being transferred into a CoinEx-controlled cold (multi-sig) wallet (w/ $72m).

Prior to this , the blockchain security firm tagged CoinEX about a suspicious outflow of large funds from the exchange. Soon after the information made headlines, CoinEx, in a statement assured users that their funds were secured and untouched. In addition, parties who incurred any loss due to the breach would be adequately compensated. As part of the early measures, the exchange has temporarily suspended deposit and withdrawal services for a comprehensive assessment

Buy Polygon (MATIC) quickly and securely with PayPal, credit card or bank transfer at eToro. Visit Website << You have our solemn promise that a detailed timeline and comprehensive report about this incident will be shared with the community as swiftly as possible. In these challenging times, we earnestly seek your understanding and patience. Our priority has always been, and will continue to be, the security and trust of our users. We deeply regret any distress this may have caused and assure you of our unwavering dedication to safeguarding your interests.

CoinEX Moves Assets to Cold Wallet

According to “Wu Blockchain,” the exchange is currently moving the affected hot wallet assets to a trusted cold wallet. Its wallets are reportedly holding $97.83 million in assets with $89 million stored in cold wallets. This is made up of $51.7 million ETH and $18.23 million USDT

This year, several crypto firms have become a target to hackers with the likes of Exactly Protocol, Harbor Protocol, and Vyper exploited in the last three months. It can also be recalled that cryptocurrency platform Atomic Wallet lost $35 million to hackers in June. Alphapo and CoinsPaid also lost $60 million and $37 million respectively to cybercriminals who were said to be connected to the North Korean military

CoinEX is also in a legal battle with a New York state attorney for alleged business registration violations. Regardless of this, the team recently announced a partnership agreement with the premier Web3 conference event to show its commitment to cultivating an inclusive eco. Its trading module equips users with trading products and a configurable market. It has more than 1,100 trading pairs with Bitcoin, leading altcoins and stablecoins pegged to the US Dollar

Regardless of the breach, investors are still building momentum in the market as almost all the leading cryptos record positive moves in the last hour and 24 hours. Bitcoin has a bullish market sentiment and is currently trading at $25,388.10

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