- Suspicious withdrawals on CoinEx prompt immediate action and investigations.
- CoinEx exposes all wallet addresses connected to the hack in three batches.
- The exchange assures its users that their funds are not lost despite paused withdrawals.
On September 12, 2023 at 2:18 p.m. (UTC), Cyvers Alerts published a tweet about suspicious withdrawals from the crypto exchange Coinex. Crypto assets like ETH, TRON, MATIC and more from CoinEx hot wallets were transferred to unknown addresses. Accordingly, this indicates a possible hack.
The CoinEx team responded to the incident on Twitter at 5:38 p.m. the same day. According to the official statement, the exchange’s risk control system had detected abnormal withdrawals from several hot Wallet Addresses used to store CoinEx exchange assets.
In an immediate response, the exchange formed a special investigation team to investigate the incident. Additionally, it also promised 100% compensation for all losses incurred as a result of this breach.
CoinEx’s Swift Security Response
The CoinEx security team went on to track the stolen funds and made significant progress. At 6:20 p.m. on September 12th, CoinEx announced the first batch of hacker wallet addresses on Twitter and asked various blockchain organizations for assistance in freezing these addresses.
At 2:41 a.m. on September 13th, CoinEx announced the second group of hacker addresses. Soon after alerting its community about the first two batches of hacker wallets, the platform revealed one more batch of addresses. In total, three batches of suspicious wallet addresses were exposed. To specify, all these wallets were linked to the hack.
So far, CoinEx has disclosed three groups of hacker addresses and asked the relevant project teams and exchanges to monitor and freeze the suspicious addresses. Users are worried as they are currently unable to withdraw funds from CoinEx.
Fortunately, they have been assured by the exchange that withdrawals will resume once the hackers’ addresses are fully identified and isolated after a ‘thorough verification’ in the interest of asset security.
The team also emphasized that users’ assets remain ‘safe and intact’. Unlike cold wallets, which are kept offline and therefore more secure, hot wallets are more vulnerable to hacker attacks. In recent years, there have been numerous incidents of exchange hacks and coin thefts that have dealt a serious blow to blockchain security.
It remains a challenge for crypto exchanges to find effective ways to keep hackers at bay. At the time of writing, CoinEx is still assessing the losses incurred. We will continue to monitor the situation closely and provide updates as soon as possible.
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