CoinEx Resumes Services With New Wallet

CoinEx, a cryptocurrency exchange, resumes services after a $70 million security breach. New wallet system implemented for enhanced security.

Sep 21, 2023 - 17:03
CoinEx Resumes Services With New Wallet
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CoinEx, a cryptocurrency exchange, recently faced a significant security breach resulting in a $70 million loss. However, the platform is set to resume its services, reinforced with a new wallet system.

CoinEx's private keys to their hot wallets were compromised. These wallets, typically used for temporary storage of user deposits and withdrawals, became the hackers' target. The breach affected a wide array of cryptocurrencies, with some of the highest value tokens being Bitcoin, Ether, Solana, and Tron.

CoinEx announced that from September 21, deposit and withdrawal services for Bitcoin, Ether, Tether, USD Coin, and other tokens would be resumed. CoinEx updated deposit addresses for the listed tokens and generated new ones for its users. A crucial advisory was also issued, cautioning users against depositing into old addresses, as it would lead to irreversible asset loss. 

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

CoinEx's commitment to its users was evident in its approach after the hack. The exchange emphasized its 100% asset reserve policy, designed to shield users from potential security threats. Furthermore, they assured users that their assets remained unaffected by the breach. In the unlikely event of any financial losses, CoinEx's User Asset Security Foundation pledged to cover them.

CoinEx recently disclosed that due to breached private keys associated with certain hot wallet addresses, attackers managed to siphon off cryptocurrencies valued at around $70 million. These hot wallets functioned as short-term repositories for user transactions and deposits. Elliptic, a blockchain analysis company, associated the breach with the North Korean hacking group "Lazarus Group."

The attackers stole around 231 BTC valued at $5.7 million, 4,953 ETH worth $8 million, 135,600 Solana equating to $2.6 million, and 137 million Tron tokens amounting to $11 million. These were among the most valuable tokens taken from the 18 digital currencies impacted by the breach.

Philip Bohmer Philip is a seasoned journalist that brings clarity to the complex world of cryptocurrencies through his articulate and insightful articles. His passion for blockchain technology fuels his writing, making him a trusted voice in the rapidly evolving digital currency landscape.