Home News Hackers withdrew about $8M from LCX’s hot wallet

Hackers withdrew about $8M from LCX’s hot wallet

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Hackers attacked the hot wallet of LCX cryptocurrency exchange registered in Liechtenstein. Thus, the company reported the loss of ERC-20 tokens during the attack. For the duration of the investigation, deposits and withdrawals on the platform have been suspended.

The LCX team estimated the damage from the hackers’ actions at $7.94 million. Another $0.7 million in digital assets are frozen. According to the report, the incident did not affect the remaining wallets of the exchange.

The company reported the incident to law enforcement agencies, advising its users to refrain from depositing funds. Moreover, involved the Elliptic analytical company in the investigation.

The platform team stressed that users’ funds are safe

According to PeckShield analysts, hackers withdrew assets worth $6.8 million from the platform; including $3.43 million in USD Coin (USDC), and $2.22 million in the LCX exchange’s native token.

Furthermore, according to on-chain data, unknown persons sent most of the stolen tokens already to the address of the Tornado Cash transaction mixing service. At the time of writing, a little more than $1.07 million in Ethereum (ETH) and LCX remained in the attackers’ wallet.

The crypto exchange has not announced plans to return the stolen funds. In addition, the platform team stressed that users’ funds are safe.

Hot wallets hack

Recall that earlier in December 2021, hackers withdrew more than $77 million in cryptocurrency from the hot wallets of the Singapore AscendEX exchange. The latter promised to compensate for all the funds lost by users. PeckShield noted that hackers withdrew $77.7 million from the cryptocurrency exchange. According to analysts, the attackers stole $8.5 million in Polygon network tokens, $9.2 million — BSC, $60 million — ETH.

In the same month, hackers withdrew more than $150 million from the Ethereum and BSC hot wallets of the BitMart cryptocurrency exchange registered in the Cayman Islands. The BitMart administration initially denied the information about the hack. A few hours later, the exchange’s founder and CEO Sheldon Xia confirmed that its wallets had been hacked. He clarified that the hacking occurred as a result of the theft of a private key, with which two hot wallets were compromised. Consequently, Xia promised that BitMart will compensate the damage to the affected users at its own expense.

According to Crystal Blockchain, over the past ten years, the cumulative damage to cryptocurrency platforms and their users from the actions of hackers and scammers exceeded $12 billion.

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