Updated Sept. 13, 10:40UTC: Blockchain security firm and crypto sleuth ZachXBT SlowMist believe that North Korea’s Lazarus Group is implicated in the hack after a wallet linked to Lazarus was involved.
Updated Sept. 13, 09:00UTC: A CoinEx representative issued an apology for the breach and announced it would compensate 100% of the losses incurred by customers.
The spokesman added:
“We deeply regret any distress this incident may have caused, and we want to assure our users of our unwavering dedication to safeguarding their interests.”
A potential storm is brewing as CoinEX, a well-known crypto exchange, faces allegations of a hack.
The prominent security firm PeckShield issued a warning about a “suspicious outflow of large funds from hot wallets.” Following this revelation, there has been a significant shift in the crypto market.
Is Crypto Exchange CoinEX Hacked?
Over $27.8 million, housed within CoinEX’s Ethereum, TRON, and Polygon hot wallets, has reportedly vanished. This staggering amount of money, representing a significant portion of investors’ assets, underscores the magnitude and severity of the alleged breach.
Julio Moreno, Head of Research at CryptoQuant, confirmed seeing some “weird behavior” on CoinEX’s Ethereum reserves.
“Almost 5,000 ETH gone today in an hour and 40,000 ETH since May. Reserves are now basically zero ETH,” Moreno affirmed.
Read more: Top 10 Must-Have Cryptocurrency Security Tips
Undeniably, security in the crypto market takes top priority. Consequently, the potential breach of CoinEX’s systems dramatically underscores the importance of strict security measures.
Although the industry has witnessed hacks before, every incident amplifies the risks of storing cryptocurrencies on exchanges and emphasizes the urgency for proactive safety steps.
What to Do After CoinEX Hack?
For users currently entangled in this predicament, a few immediate actions can offer some relief:
- Stay Informed: Continuously monitor updates from CoinEX and credible security agencies like PeckShield. Staying informed can help in making timely decisions.
- Update Security Protocols: Ensure that all passwords, 2FA, and other security settings related to your account are up to date. Consider using hardware wallets for added security.
- Limit Exposure: Refrain from making further transactions on CoinEX until the company confirms the resolution of the issue. Transferring assets to a secure, unaffected platform may also be considered.
- Maintain Open Communication: Reach out to CoinEX’s support team and report any discrepancies in your account. Quick action can sometimes mitigate larger losses.
- Educate and Collaborate: Engage with the broader crypto community. Forums, discussions, and expert opinions can shed light on emerging solutions and offer solidarity in tumultuous times.
Read more: 9 Crypto Wallet Security Tips To Safeguard Your Assets
The alleged hack of CoinEX serves as a stern reminder of the pitfalls in the crypto market. Consequently, investing in the knowledge of best practices is essential. Additionally, recognizing the signs of potential breaches is a critical step. Furthermore, advocating for top-tier security standards are the stepping stones to a safer environment.
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