Hong Kong-based cryptocurrency exchange CoinEx has confirmed the theft of over 70 million dollars worth of cryptocurrencies as a result of a large-scale security breach. The incident initially began with abnormal withdrawal activities on September 12, 2023, and shortly after, the platform announced that users’ assets were safe and compensation would be provided. You can read the details of the news in our article below.
Private Keys Seized
However, the situation has become more complex. After the initial scandal, as the CoinEx team attempted to recover the lost funds, hackers managed to seize private keys and stole over 70 million dollars worth of cryptocurrencies in total.
Following these incidents, the CoinEx team announced that they have been making intensive efforts to create and distribute a new wallet architecture to restore the functionality of both users and the platform.
Withdrawals Suspended
The exchange also claims that the stolen amount represents only a small percentage of the total managed assets. CoinEx commits to compensating affected users for the entire amount of lost funds. However, in an effort to prevent further losses, it has suspended withdrawal services, patched security vulnerabilities, and transferred the remaining assets from affected hot wallets to cold wallets.
Lastly, exchange officials stated in their statement to Cointelegraph that they plan to gradually resume withdrawal operations and assist users in safely recovering their funds.
