Amidst the constantly evolving world of cryptocurrencies where security breaches can unsettle even the most experienced investors, CoinEx, a well-known cryptocurrency exchange, faced its fair share of turbulence when a security breach resulted in the loss of over $50 million. However, the story doesn’t simply conclude there. Presently, CoinEx has already accomplished 50% of its wallet system reconstruction and remains resolute in rebuilding trust and guaranteeing the utmost level of security for its users.
On September 12th, real-time monitoring platform Cyvers Alerts raised awareness about some abnormal activities surrounding CoinEx’s Ethereum hot wallet. These activities turned out to be a security breach that led to significant monetary losses. In response, CoinEx promptly ceased deposits and withdrawals to mitigate further losses and confront the issue head-on.
#CoinExResponseUpdate – CoinEx Team Work Progress Update on September 18th
(Details in threads)
Caution: Any claims stating that CoinEx has resumed withdrawal services are false & scam-related. Please report such messages to us & don't engage in these communications. pic.twitter.com/5pmlZgrGIU
— CoinEx Global (@coinexcom) September 18, 2023
Subsequent investigation revealed the identity of the perpetrators behind the attack: none other than the infamous Lazarus Group, a North Korean hacker organization. This cybercriminal group has gained notoriety for carrying out numerous high-profile security breaches within the cryptocurrency domain, resulting in losses amounting to hundreds of thousands of dollars. One of their most recent exploits involved the cryptocurrency platform Stake, where they managed to abscond with an astonishing $41 million.
CoinEx has embarked on a comprehensive strategy to rebuild and regain the trust of its users. Their first priority was the reconstruction of the wallet system, with the ultimate aim of ensuring 100% asset security before reactivating withdrawal functionalities.
For cryptocurrencies with low circulating supplies, CoinEx revealed they are strategizing compensation due to market purchase challenges.
Despite the distress and uncertainty experienced by CoinEx users during the waiting period, the exchange remains resolute in its mission. The completion of 50% of the wallet system reconstruction signifies a significant milestone towards resuming normal operations.
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