CoinEx Suffers Breach With Over $27M Siphoned

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Hong Kong-headquartered cryptocurrency exchange CoinEx has been breached and over $27 million in digital assets were siphoned from the platform’s wallets. 

According to Colin Wu of Wu Blockchain, the assets were stolen across specific chains including Ethereum (ETH), Tron (TRX), and Polygon (MATIC). Peckshield and some other cybersecurity firms have highlighted a certain Etherscan page as evidence of the huge outflows. 

In response to the hack, CoinEx moved assets from the affected hot wallet to a cold storage address. This cold wallet holds $89 million, primarily consisting of ETH ($51.7 million) and USD ($18.23 million).

CoinEx Claims Customers’ Assets Remain Untouched

After a few hours, CoinEx took to the X app to officially confirm the breach on its wallet while also stating that customers’ assets are secured and untouched. 

“On September 12, 2023, our Risk Control System detected anomalous withdrawals from several hot wallet addresses used to store CoinEx’s exchange assets. Promptly recognizing the gravity of the situation, we immediately established a special investigative team to delve into the matter,” CoinEx posted on X.

Users Likely to Get 100% Refund

Also, the crypto exchange mentioned that the extent of the hack was yet to be determined. Markedly, they did not know the exact amount that was stolen but it was believed to be only a small portion of CoinEx’s total asset. 

Affected users have been promised a full refund. To reinforce security on its wallet, CoinEx decided to temporarily halt deposit and withdrawal services on its platform. 

CoinEx Faced With Legal Battle And Expansion

It is worth noting that the exchange has serially been plagued by many challenges. Currently, it is grappling with a violation suit from New York authorities. The crypto exchange was sued by New York state attorney for business registration violation. However, it is not all gloomy for CoinEx as the company recently announced a new partnership with a Web3 conference to bolster its cryptocurrency trading ecosystem.

With the growing trends of hacks and scams, industry experts are intensely advocating for increased security measures to out off bad actors. In the first half of 2023 alone, the crypto industry has recorded around $656 million loss owing to hacks, scams, and rug pulls.

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