Crypto News & Watchlists

Suspected $28 Million Coinex Hot Wallet Hack Emerges

Suspected $28 Million Coinex Hot Wallet Hack Emerges

Numerous reports have surfaced, pointing to a potential security breach in Coinex’s hot wallets, suggesting a hacker’s involvement. Peckshield, a blockchain security and data analytics firm, observed a concerning pattern – an unusual outflow of substantial assets originating from addresses affiliated with Coinex. These reports claim that a sum of nearly $28 million vanished from these accounts.

** Editor’s Note: This post was updated to reflect recent commentary from Coinex.

Coinex Faces Potential $28 Million Hack as Onchain Reports Point to Hot Wallet Breach; Full Details Still Unknown

Several reports have surfaced, painting a troubling picture of a potential hot wallet hack at Coinex. On Tuesday, September 12, 2023, alarming news broke that the exchange might have fallen victim to a security breach involving ETH, MATIC, TRX, and several other crypto assets resulting in a staggering loss of an estimated $27.8 million.

Adding to the intrigue, blockchain security and data analytics firm Peckshield had issued a foreboding warning to Coinex on that very Tuesday:

Hi [Coinex], suspicious outflow of large funds from [Coinex] hot wallets.

For context, Coinex stands as a distinguished global cryptocurrency exchange, founded in December 2017, with its headquarters nestled in the bustling city of Hong Kong. The exchange is the brainchild of none other than Haipo Yang, a prominent figure in the cryptocurrency realm and the founder of Viabtc Group.

The aftermath of this incident witnessed a staggering amount of TRX and ETH being drained from the wallet, accompanied by various tokens such as GRT, DAI, and UNI. When all is said and done, once the issue is properly addressed, the drained funds might very well surpass the initial estimate of $28 million. Intriguingly, onchain data traced the unusually substantial outflows to an address devoid of any prior transaction history.

So far onchain stats show a loss of:

Coinex Responds

At 1:38 p.m. (ET) on Tuesday, Coinex updated the community. “Urgent Notice: Security Incident on Coinex – Immediate Actions Underway,” the social media post says. “On September 12, 2023, our Risk Control System detected anomalous withdrawals from several hot wallet addresses used to store Coinex’s exchange assets. Promptly recognizing the gravity of the situation, we immediately established a special investigative team to delve into the matter. Preliminary assessments indicate unauthorized transactions involving ETH, TRX, and MATIC. The precise amount of the loss is still being determined, and the affected fund is just a very small portion of Coinex’s total assets.”

Coinex assured all users that their assets were secure and untouched. The exchange promised that affected parties would receive 100% compensation for any loss due to this breach. For added security, deposit and withdrawal services are temporarily suspended and will resume after a thorough review. Coinex promises that a detailed timeline and comprehensive report about this incident will be shared with the community as swiftly as possible.

What do you think about the Coinex hot wallet transfers? Share your thoughts and opinions about this subject in the comments section below.

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