CoinEx suspects being Hacked for More Than $27 Million 

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key takeaways:

  • CoinEx, a cryptocurrency exchange, is facing concerns of a possible hack due to substantial outflows from their hot wallets.
  • Etherscan data reveals that a cryptocurrency address received nearly 5,000 ether from a known CoinEx hot wallet at 9:20 am Eastern Time.

The cryptocurrency exchange CoinEx is currently facing suspicion of a security breach due to unusually large withdrawals directed towards an address lacking any prior transaction history. 

According to estimates from blockchain security platform Cyvers Alerts, the potential losses resulting from this incident are estimated to be approximately $27 million.

CoinEx, which typically records a daily trading volume of $32 million, has witnessed significant outflows from its hot wallets. These transfers, as reported by Cyvers Alerts, sum up to approximately $18 million. 

According to information from Etherscan, a cryptocurrency address received close to 5,000 ether from a recognized CoinEx hot wallet at 9:20 am Eastern Time. 

Subsequently, the address has been methodically withdrawing various other cryptocurrencies from the exchange and converting them into ether (ETH) through the decentralized exchange Uniswap. This activity suggests an ongoing attack on the platform.

The fact that these transactions originated from three of CoinEx’s hot wallets has raised concerns among security experts, suggesting a possible hack targeting the exchange. Despite their efforts, the Cyvers Alerts team has been unable to establish contact with CoinEx officials.

Notably, CoinEx had previously made headlines in February when it faced a lawsuit filed by Letitia James, the Attorney General of New York. The lawsuit alleged that CoinEx had neglected to comply with state registration requirements.

According to the legal documents, the platform presented itself as a cryptocurrency exchange but failed to undergo the necessary regulatory processes to qualify as a broker-dealer for securities and commodities.

Before offering its services within the state, CoinEx purportedly omitted filing as an exchange with the United States Securities and Exchange Commission (SEC), as a commodities broker-dealer with the Commodity Futures Trading Commission, and failed to register with New York regulators.

A crypto journalist operating under the handle @WuBlockchain has brought to light that the CoinEX platform has officially declared the commencement of wallet maintenance starting on September 12, 2023, at 23:18:30 (UTC+8). During this maintenance period, deposit and withdrawal operations will be temporarily unavailable.

Numerous cybersecurity accounts on the X platform (Twitter) are highlighting a specific Etherscan page as proof of the reported outflows.

According to the findings of the security firm Cyvers Alerts, an additional $8.5 million in cryptocurrency assets has been withdrawn to an address on the Tron blockchain, while $290,000 in assets was directed to a Polygon address. In total, these withdrawals across the three blockchain networks amount to $27.4 million.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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