Cryptocurrency exchange CoinEx is preparing to resume operations following a significant security breach that resulted in a loss of approximately $70 million. The hack, which was attributed to compromised hot wallet private keys, led to the suspension of withdrawal services to prevent further losses.
In the cyber attack, the perpetrators managed to extract a substantial amount of various cryptocurrencies. This included 231 units of Bitcoin, valued at approximately $5.7 million, and 4,953 units of Ethereum, with an estimated worth of $8 million.
Additionally, 135,600 units of Solana ($2.6 million) and a staggering 137 million units of Tron tokens ($11 million) were also taken. These particular digital currencies were among the most valuable of the 18 different types that were impacted by this security breach.
CoinEx Has Taken Decisive Actions
In response to the incident, CoinEx has rebuilt its wallet system and is set to resume deposit and withdrawal services for select cryptocurrencies. The exchange has prioritized the construction and deployment of a new wallet system to facilitate activities for the 211 blockchains and 737 tokens that it served before the hacking incident.
CoinEx has announced that it will resume deposits and withdrawals with 11 cryptocurrencies, including BTC, ETH, USDT, and USDC. As part of the new system, CoinEx will update deposit addresses for the listed tokens and generate new deposit addresses for its users.
Customers have been advised not to deposit into old addresses on the platform, as this could result in permanent asset loss.
Despite the significant financial loss, CoinEx maintains that the stolen amount represents a small percentage of its total assets under management.
The exchange has assured its users that it has implemented a 100% asset reserve policy to safeguard against potential security threats. CoinEx has also stated that its User Asset Security Foundation will cover any financial losses and affected users will be compensated entirely for any lost funds.
As CoinEx gears up to restore its services, it has warned of a potentially large number of pending withdrawals at the resumption of its operations. The exchange is still investigating the identity of those responsible for the security breach.
