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.
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