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CoinEx Faces $27 Million Crypto Security Breach: Investigation Underway

CryptoCoinEx Faces $27 Million Crypto Security Breach: Investigation Underway

On September 12, CoinEx, a cryptocurrency exchange, faced an unusual situation when approximately $27 million worth of various tokens were transferred from a known hot wallet to an address with no prior transaction history. This raised suspicions of a potential hack within the crypto community.

Around 1:21 pm UTC, the hot wallet sent 4,947 Ether (ETH), valued at $7.9 million at the time, to an Ethereum account that had no previous activity. Following this, the same wallet initiated numerous transfers of various tokens, including 408,741 Dai (DAI), 2.7 million Graph (GRT) tokens, 29,158 Uniswap (UNI) tokens, and more, all directed to the same address.

Leading blockchain security firm PeckShield labeled these transactions as “suspicious,” and Julio Moreno, CryptoQuant’s head of research, described the behavior of the CoinEx wallet as “strange.” Furthermore, it was observed that CoinEx’s Ether reserves had effectively dwindled to zero.

At 5:25 pm UTC, CoinEx officially confirmed via Twitter that they had detected suspicious withdrawals, and their Risk Control System had identified anomalous activity in several hot wallet addresses storing the exchange’s assets. In response, they established a dedicated investigative team to determine the root cause of this incident.

Despite the breach, CoinEx assured its users that the withdrawn cryptocurrency represented only a small portion of their total reserves and pledged to provide 100% compensation for any losses incurred due to this security breach.

By FCCT Editorial Team

Disclaimer: The views expressed in this article are independent views solely of the author(s) expressed in their private capacity.

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