CoinEx Rebounds With New Wallet After $70M Hack

CoinEx Rebounds With New Wallet After $70M Hack

Table of Contents

Cryptocurrency exchange CoinEx is making a swift recovery with enhanced security measures following a recent security breach that saw hackers make off with $70 million due to compromised hot wallet private keys.

Road to Recovery

In an official press release on September 20th, CoinEx announced its plans to resume deposits and withdrawals starting on September 21st. Users will regain access to assets like BTC, ETH, TRX, USDC, and various other cryptocurrencies.

The crypto exchange had fallen victim to a security breach on September 12th, resulting in a loss of $54 million. The platform responded to the attack by immediately halting all services in order to evaluate the extent of the damage and bolster its defenses.

New Wallet System

To prevent future incidents, CoinEx has prioritized the creation and deployment of a new wallet system. This system will support the 211 blockchains and 737 tokens previously traded on the platform.

The exchange emphasizes the stability of its new wallet system but urges users to remain patient during this transitional phase, writing, 

“Safeguarding user assets has always been our top priority at CoinEx, and we have been committed to and implemented 100% reserves to safeguard user asset security, since going online in 2017. After this upgrade, we will be further improving our security construction, risk systems, and investing more in the security field.”

One important note for users is that deposit addresses for listed tokens will be updated, and new deposit addresses will be generated. It is crucial not to deposit assets into old addresses, as doing so may result in permanent loss. Furthermore, CoinEx forewarns of potential delays due to a high number of pending withdrawals.

Restoring Confidence

Following the breach, CoinEx was quick to reassure its customers that their assets remained unaffected. Any financial losses incurred would be covered by CoinEx’s User Asset Security Foundation.

As for the identity of the hackers, investigations are still ongoing. Blockchain analytics firm Elliptic has linked the incident to the North Korean "Lazarus Group." However,  CoinEx has not confirmed this connection but instead addressed the hacker directly through an open letter to negotiate the return of the stolen funds. 

The Stolen Assets

CoinEx has released details regarding the assets stolen during the breach. According to the platform, the stolen assets included 231 BTC ($5.7 million), 4,953 ETH ($8 million), and 135,600 Solana tokens ($11 million). These were among the highest-value tokens affected by the hack, totaling $24.7 million in stolen assets.

In conclusion, with the implementation of a new wallet system and heightened security measures, the exchange aims to regain users' trust and protect their investments in the ever-evolving world of cryptocurrency.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. 

Related Topics: 

You may like