- CoinEx, a cryptocurrency exchange, is under scrutiny for a potential security breach.
- The breach may have resulted in a loss of approximately $53.9 million.
- CoinEx has committed to offset any user losses, guaranteeing 100% compensation.
On September 12, CoinEx, a well-known cryptocurrency exchange, came under scrutiny due to potential security breach suspicions, which may have resulted in a loss of approximately $53.9 million. This occurrence caused significant concern within the cryptocurrency sector, as substantial withdrawals to an unknown address were noted as suspicious.
On Tuesday, at 1:21 PM UTC, a notable CoinEx hot wallet transferred approximately 4,947 ETH, equivalent to $7.9 million, to an Ethereum (ETH) account. The recipient account was particularly intriguing due to its lack of previous transaction history. After this puzzling transfer, many tokens were moved from CoinEx’s hot wallet to the same obscure address. This sudden surge of transactions was enough to draw the attention of several blockchain security firms, which quickly classified the withdrawals as “suspicious.”
Slow Mist, a blockchain security platform, has calculated a loss of approximately $53.96 million in various cryptocurrencies. The compromised assets included Bitcoin
Significantly, Julio Moreno, the director of research at CryptoQuant, voiced his apprehensions regarding the peculiar activity of CoinEx’s wallet. He underscored that the Ether reserves in the wallet had alarmingly reduced to almost zero ETH, a shocking disclosure.
CoinEx Affirms Its Position
In light of the escalating situation, CoinEx utilized Twitter at 5:25 PM UTC on Tuesday to communicate about the problem. They disclosed that their Risk Control System had identified “unusual withdrawals” from several hot wallet addresses tasked with protecting the exchange’s assets.
In response to this crucial circumstance, CoinEx formed a “dedicated investigation team” to examine the issue and determine the scope of the breach.
CoinEx has stressed that the withdrawn cryptocurrency is merely a small portion of their total reserves in response to worried users. They have committed to offset any losses users may have suffered due to this security breach, guaranteeing 100% compensation.
