CoinEX Cryptocurrency Exchange Hacked, Up To $53 Million Estimated Loss

CoinEX, a major global cryptocurrency exchange, recently disclosed that their hot wallets were compromised, leading to the theft of digital assets that supported the platform's operations.

In a statement, the company reassured its users that their assets were "secure and untouched," adding that affected parties would receive "100% compensation for any loss due to this breach."

Although specific figures are yet to be disclosed, blockchain security firm PeckShield estimates that CoinEX lost $19 million in Ethereum (ETH), $11.5 million in Tron (TRON), and around $295,000 in Polygon (MATIC). According to PeckShield, the damage totals about $31 million.

In contrast, a separate analysis led by CertiK Alert estimates the loss at $53 million. The company is expected to soon release a comprehensive report outlining a detailed timeline of the events surrounding the incident.

Operational Impact

In the wake of the security breach, CoinEX has temporarily suspended deposit and withdrawal services. The suspension aims to prevent further unauthorized transfers and to secure the remaining assets.

According to PeckShield, the remaining $72 million in assets kept in the same location have been redistributed to cold wallets for better protection.

Investigative Leads

While no concrete evidence points to a specific culprit, attention is drawn to the North Korean hacking group Lazarus.

Blockchain investigator ZachXBT says that one of the wallet addresses linked to this breach was previously associated with the Lazarus group.

CoinEX is actively collaborating with other cryptocurrency exchanges to track the wallet addresses tied to the incident and limit the attackers from moving or cashing out the stolen funds.

Conclusion

The recent hack has once again highlighted the vulnerabilities associated with cryptocurrency exchanges and the broader digital asset ecosystem.

CoinEX has yet to release a detailed report on the incident, but its commitment to compensating affected users may be a cushion to its reputation. Meanwhile, investigations are ongoing to trace the stolen assets and identify the culprits behind this substantial heist.