Lykke Exchange Halts Trading After $22M Security Breach

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Key Takeaways:

  • UK-based crypto exchange Lykke has halted trading after a suspected hack resulted in a loss of over $22 million.
  • The incident was initially reported by on-chain researchers on ‘X’

Lykke, a well-known UK-based cryptocurrency exchange, has recently ceased its trading operations following a significant security breach.

 The exchange, founded in 2015 and based in Switzerland, reported a loss of $22 million due to the exploit. The news was shared via social media platform X, where Lykke also announced the suspension of withdrawals as a preventive measure.

Launched as a “no fee crypto exchange,” Lykke has grown from its origins as a prominent forex broker. The closure came just two days after the hack, which was initially reported by web researcher SomaXBT. 

According to Taylor Monahan, a developer at MetaMask and crypto defense expert, the breach resulted in suspicious outflows of 158 BTC and 2,161 ETH.

In a detailed post on June 10th, Lykke acknowledged the attack and assured customers that the affected systems were immediately shut down to mitigate damage. While the exchange did not disclose the exact cause of the hack, it confirmed that the security breaches were thoroughly examined and fully addressed.

 Lykke emphasized its robust financial health and reassured clients that their funds were safe and would be recovered.

However reports suggest that, in the aftermath of the breach, Lykke customers have been unable to redeem their assets, with many reporting empty account balances. This incident underscores the ongoing challenges and risks associated with centralized cryptocurrency exchanges and highlights the need for robust security measures in the industry.

The company revealed that the attacker had exploited private keys to steal the crypto assets. Following the breach, trading operations were shut down on June 6th due to unauthorized access. The hack led to a significant outflow of funds, with on-chain statistics showing that the stolen Ether was quickly swapped for the stablecoin DAI.

Lykke has hired a cybersecurity team to assist in blocking and recovering the stolen assets. The team’s estimates indicate that more than $22 million was lost in the attack. The exchange also stated that it had identified the IP addresses of the attacker and would use this information in a criminal investigation.

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Aadrika Sharma
Aadrika Sharma

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

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