CoinEx Cryptocurrency Heist: $27M Vanishes In Suspected Cyberattack

A wallet belonging to CoinEx, conta­ining approx­imately $27 million worth of various tokens, made an unusual transa­ction. The recipient wallet had no previous record of transa­ctions, which raised concerns within the exchange’s team.

On Sep 12, the cryptoc­urrency exchange CoinEx experienced a notable occur­rence. Funds were flowing out towards an address without any prior trans­action history. This unexp­ected event raised concerns among security experts, implying a potential breach of the exchange’s systems. Block­chain security platform Cyber Alerts estimated the losses to be approximately $27 milli­on.

At approximately 1:21 pm UTC, a widely recognized CoinEx hot wallet initiated a transa­ction. The transfer involved around 4,947 Ether, valued at $7.9 million at that parti­cular moment. This subst­antial amount was sent to an Ethereum address. Interes­tingly, the receiving account had no prior trans­action history before this event occurred.

After the trans­action, the CoinEx hot wallet transferred significant tokens to the same desti­nation address. The trans­ferred tokens included approximately 408,741 Dai stable­coins, 2.7 million Graph (GRT) tokens, 29,158 Uniswap tokens, and others.

PeckShield Raises Concerns About CoinEx Outflow

PeckS­hield, a block­chain security firm, raised concerns about the outflow, terming it as ‘suspi­cious.’ Julio Moreno, Crypto­Quant’s head of research, also worried about the atypical behavior observed in the CoinEx wallet. He noted that the Ether reserves in the wallet have effec­tively depleted to zero.

At 5:25 pm UTC, CoinEx made an announ­cement through Twitter that they had ident­ified unusual withd­rawals on their platform. The exchange revealed that its Risk Control System detected irregular withd­rawals from multiple hot wallet addresses where CoinEx stores its exchange assets. In response to the incident, CoinEx formed a dedicated invest­igative team to delve into the matter and gather all necessary detai­ls.

The team asserted that the crypto funds removed are only a small part of the exchange’s reserves. They assured users that they would be fully compe­nsated for any losses caused by this security breach.

Related Reading | Ethereum Co-founder’s Twitter Hacked: $691,000 Losses in Deceptive Link

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