- CoinEx hot wallets lost more than $31 million after they were hacked on September 12.
- The hackers made away with ETH, TRX and MATIC, confirmed by the exchange soon after.
- In response, CoinEx established an investigative team and assured affected investors that they would be compensated.
Crypto exchange CoinEx fell victim to cybercrime earlier in the day as perpetrators managed to steal millions of dollars worth of crypto assets. While the exchange reassured 100% compensation, users did not hold back from accusing the exchange of rug pull despite CoinEx providing proof-of-reserves.
Read more - Bitcoin price rise pulls crypto market cap above $1 trillion; US headline CPI forecast to rise; core to fall
CoinEx hack leads to ETH, TRX and MATIC theft
CoinEx, a Hong-Kong-based cryptocurrency exchange, confirmed suspicions of hacks earlier on September 12. As huge amounts of outflows from the exchange's hot wallets came to light, security analytics firm PeckShield alerted the exchange and users on X (Twitter).
This was followed by confirmation from the exchange itself, which tweeted,
"On September 12, 2023, our Risk Control System detected anomalous withdrawals from several hot wallet addresses used to store CoinEx's exchange assets…Preliminary assessments indicate unauthorized transactions involving ETH, TRON, and MATIC.
While the exchange did not provide a clear amount as to how much crypto assets were stolen from the hot wallets, PeckShield notified that more than $31 million worth of tokens were taken by the hackers. The hot wallets were drained of $19M worth of ETH, $11.5M in TRON and MATIC, amounting to $295,000.
Our investigation shows @coinexcom has been drained ~$31m in the following chains: ~$19M (ETH), ~$11.5M (TRON), ~$295k (Polygon).
— PeckShieldAlert (@PeckShieldAlert) September 12, 2023
The remaining funds are being transferred into a CoinEx-controlled cold (multi-sig) wallet (w/ $72m) : https://t.co/HYuoQHQddN https://t.co/cE5K5wDrgR pic.twitter.com/lCZ1T2HlTe
In response to the hack, CoinEx stated that it had established an investigative team and suspended deposit and withdrawal services. The crypto exchange also reassured that the impacted users would be fully compensated for their losses.
However, this reponse did not stop users from accusing the exchange of a potential rug pull despite the fact that CoinEx has established proof-of-reserves. The audit system was first initiated by Binance founder ChangPeng Zhao in response to the FTX collapse to reassure investors of the safety of their funds.
"Promptly recognizing the gravity of the situation, we immediately established a special investigative team " :
— Baran (@SyLianmm) September 12, 2023
"A team made up of ourselves determined that we were completely innocent of any fraud, and we also cleared ourselves after investigating ourselves for any rug pull."
Neither of the affected token's price actions seemed to have borne any negative effect from the hack. FXStreet is awaiting a reply from CoinEx Global in response to the hack.
Read more - Bitcoin price climbing above $26,000 brings profit to BTC-related stocks
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.