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CoinEx Suspends Operations After $54M Hack, Promises 100% Compensation

Published September 13, 2023 12:38 PM
Omar Elorfaly
Published September 13, 2023 12:38 PM

Key Takeaways

  • CoinEx has suspended deposits and withdrawals following a major security breach.
  • The attacker has stolen $54M worth of mixed cryptocurrencies from CoinEx hot wallets.
  • The exchange has promised that affected parties will receive 100% compensation.

On Tuesday, September 12, global crypto exchange CoinEx announced that hackers managed to steal a substantial amount of crypto tokens out of wallets saved on its platform. In the company’s earliest announcement , staff first discovered “anomalous withdrawals from several hot wallet addresses used to store CoinEx’s exchange assets.”

Moreover, the company wasn’t initially sure which tokens were stolen and how much they were worth. 

“Preliminary assessments indicate unauthorized transactions involving $ETH, $TRON, and $MATIC. The precise amount of the loss is still being determined, and the affected fund is just a very small portion of CoinEx’s total asset.”

However, later findings  indicate that tokens stolen from the platform include ETH, TRX, BNB, BTC, XRP, SOL, XDAG, KDA, and BCH, amounting to nearly $54 million.

Your Money Is Safe

Naturally, the announcement raised a loud alarm among users on the platform who fear the loss of their tokens saved on CoinEX. However, the company tells  its customers, “We assure all users: your assets are secure and untouched. Affected parties will receive 100% compensation for any loss due to this breach. For added security, deposit & withdrawal services are temporarily suspended and will resume after a thorough review.

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.”

Furthermore, a crypto monitoring account called Cyvers Alerts announced  the discovery of “3 addresses of hacker have transferred most of their funds to EOA addresses for a total of 11,376 ETH.”

However, the company had stated, “Promptly recognizing the gravity of the situation, we immediately established a special investigative team to delve into the matter” during its initial announcement, which caused some followers to doubt the company’s credibility.

More Hackers Identified

CoinEx Global’s Twitter/X account tweeted a series of posts, exposing a number of wallets connected to the hack.

While the company urges “affected projects and fellow industry colleagues to assist in flagging and freezing these questionable addresses,” it has yet to mention any plans to bring back the stolen crypto or prosecute the attackers involved.

CoinEx has not immediately responded to a request for comment.

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