Following a Major Hack, CoinEx Resumes These Services

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Last Updated on September 21, 2023 by Bitfinsider

CoinEx, the compromised cryptocurrency exchange, is getting ready to start accepting deposits and withdrawals again after hackers stole $70 million worth of digital assets in a recent heist. Customers should anticipate being able to access these services again on Thursday, September 21, beginning at 8:00 UTC, according to an announcement from the exchange.

The restoration of cryptocurrency transfers for a number of coins, including Bitcoin (BTC), Ethereum (ETH), Tron (TRX), Litecoin (LTC), Dogecoin (DOGE), and Binance Coin (BNB), is being rolled out gradually by CoinEx. With the restoration of system operation, additional assets will become available for withdrawal and deposit.

Following a significant security breach that shocked CoinEx, the action was taken. Hackers that have been connected to North Korea’s Lazarus Group are said to have successfully attacked the exchange’s hot wallets and taken a sizable amount of money.

Based on blockchain security statistics, the initial estimate of the crime was approximately $29 million, but it eventually swelled to $70 million. The purpose of these hot wallets was to keep user deposits, withdrawals, and short-term holdings.

Recovery Path Following the $70 Million Theft

CoinEx has completely redesigned its wallet system in an effort to increase security and win back client trust. To make sure that consumers’ digital assets are protected from potential attacks in the future, this reform is essential. It also implies that users will need to change their deposit addresses for the impacted cryptocurrencies.

Customers were cautioned by the exchange, which emphasised the significance of transferring to these new addresses in order to prevent any irreversible fund losses. As it begins operations again, the exchange also expects a potentially large backlog of pending withdrawals.

Prior to launching full services, CoinEx is exercising caution to guarantee the stability of its new wallet system. To ensure the security of users’ digital assets and stop any more breaches, this step is essential.

A strict 100% asset reserve policy has been put in place by the exchange to shield users from possible security risks. CoinEx informed users that their assets were unaffected during the hacking incident. It further said that any incurred financial losses would be covered by the CoinEx User Asset Security Foundation.

CoinEx is working with other platforms to freeze any cash connected to the hackers since it has taken the attack seriously.

In addition, the exchange pledged to reimburse all impacted users in full in an effort to right the wrong and show its commitment to consumer protection. Rebuilding trust with users and the bitcoin community is the exchange’s goal.

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