July 21, 2024
CoinEx Reopens with Enhanced Wallet System After $70M Hack.
Latest Cryptocurrency News

CoinEx Reopens with Enhanced Wallet System After $70M Hack

Cryptocurrency exchange CoinEx is preparing to resume deposit and withdrawal services for its users after a $70 million hack, attributed to compromised hot wallet private keys. The exchange emphasized its primary goal of developing and implementing a new wallet system to support the 211 blockchains and 737 tokens it served before the security breach.

In its latest announcement, CoinEx disclosed that it will restart deposit and withdrawal services for BTC, ETH, USDT, USDC, and other tokens on September 21. The exchange will update deposit addresses for these tokens and generate fresh deposit addresses for its users. Users were cautioned against depositing funds into the old addresses to prevent permanent loss of assets. CoinEx also warned of a potentially large number of pending withdrawals when it resumes full operations, stating:

“We ensure the new wallet system is stable, and we will gradually resume deposit and withdrawal services for more assets.”

CoinEx has implemented a 100% asset reserve policy to enhance user security, and it assured users that their assets were not affected by the hack. Any financial losses would be covered by CoinEx’s User Asset Security Foundation.

The breach resulted from compromised private keys for some of CoinEx’s hot wallet addresses, allowing hackers to withdraw approximately $70 million worth of cryptocurrencies. These hot wallets served as temporary storage for user deposits, withdrawals, and temporary storage.

While blockchain analytics firm Elliptic linked the hack to North Korean “Lazarus Group” hackers, CoinEx is still investigating the identity of the perpetrators. The exchange recently provided further details regarding the stolen assets: 231 BTC ($5.7 million), 4,953 ETH ($8 million), 135,600 SOL ($2.6 million), and 137 million TRON tokens ($11 million). These were among the highest-value tokens stolen among the 18 affected cryptocurrencies. CoinEx has been contacted to determine if it will reimburse users if their assets were affected by the breach or in the future.

Photo by Worldspectrum

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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