Private Key Security Breach Results in $70M Token Theft

In a recent incident, CoinEx, a cryptocurrency exchange based in Hong Kong, disclosed that compromised private keys allowed hackers to steal over $70 million worth of tokens. The exchange is currently investigating the security breach and is taking steps to recover the funds and restore functionality to the platform.

Details of the Security Breach

CoinEx has provided further insights into their ongoing investigation, unveiling that the theft was facilitated by compromised private keys. These keys were used for storing exchange assets and conducting deposits and withdrawals. Although the stolen amount is significant, CoinEx assures its users that it represents only a small portion of their total assets under management. Affected users will be fully compensated for any losses incurred.

The exchange has suspended its withdrawal service temporarily to prevent further losses. It has also patched vulnerabilities in its system and transferred the remaining assets from the compromised hot wallets. CoinEx plans to gradually resume withdrawals within the next seven working days.

Efforts to Identify the Culprits

CoinEx is actively working to determine the identity of the individuals or group responsible for the security breach. Several blockchain security firms have attributed the attack to the North Korean Lazarus Group hackers. Additionally, CoinEx has initiated communication with the hackers in an attempt to reach a mutually agreeable resolution.

The Rising Threat of North Korean Hackers

North Korean hackers have been a persistent threat in the cryptocurrency space for several years. They have been linked to some of the largest thefts in the industry, with the Axie Infinity Ronin Bridge hack in 2022 resulting in the loss of over $650 million. As per Chainalysis, a blockchain analytics firm, North Korean hackers have already stolen approximately $340 million worth of cryptocurrency in 2023. The recent CoinEx hack and a $41 million hack of the cryptocurrency gambling platform Stake on September 4 are expected to further increase this figure.

Protecting User Assets and Building a Secure Wallet System

CoinEx is committed to ensuring the security of user assets. In addition to compensating affected users, the exchange is developing a new and robust wallet system to handle activities across various chains and assets. The focus is on fortifying security measures and preventing similar incidents in the future.

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