On September 12, 2023, crypto exchange CoinEx experienced a significant amount of outflows to an address with no prior history, which has led security experts to suspect that the exchange may have been hacked. Blockchain security platform Cyvers Alerts has estimated the losses to be around $27 million.
According to reports, at approximately 1:21 p.m. UTC, a known CoinEx hot wallet transferred approximately 4,947 Ether (ETH) to the Ethereum account 0x8bf8cd7F001D0584F98F53a3d82eD0bA498cC3dE. This amount was worth about $7.9 million at the time of the transaction. What made this transaction suspicious was the fact that the receiving account had no prior history before this transfer.
Shortly after this transaction, the CoinEx hot wallet started transferring substantial amounts of tokens to the same address. Among the tokens transferred were approximately 408,741 DAI stablecoins, 2.7 million Graph (GRT) tokens, 29,158 Uniswap (UNI) tokens, and several other tokens. These transfers were flagged as suspicious by blockchain security firm PeckShield.
The behavior of the CoinEx wallet has raised concerns among experts. CryptoQuant’s head of research, Julio Moreno, claimed that the Ether reserves of CoinEx are now practically zero. This abnormal activity and the large outflows have led experts to suggest various possible causes for the incident. These include access control violations, private key leakage, rug pulling, or even an insider job.
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As of now, CoinEx has not made any public statements regarding the incident, leaving users and the crypto community waiting for further updates and information. This is a developing story, and more details will be provided as soon as they become available.
The suspected hack on CoinEx highlights the ongoing security risks present in the cryptocurrency industry. Despite advancements in blockchain technology and security measures, hackers continue to find vulnerabilities to exploit. Exchanges and users must remain vigilant and take necessary precautions to protect their assets.
It is crucial for crypto exchanges to implement robust security measures, such as multi-factor authentication, cold storage for funds, regular security audits, and strong access control policies. Additionally, users should also take responsibility for their security by using unique and complex passwords, enabling two-factor authentication, and being cautious of phishing attempts and suspicious links.
Incidents like this serve as a reminder of the importance of decentralized finance (DeFi) and the need for individuals to have control over their assets. By owning and storing their cryptocurrencies in non-custodial wallets, users can significantly reduce the risks associated with centralized exchanges.
As the crypto industry continues to evolve, it is expected that security measures and protocols will also improve to counter the threats posed by hackers. However, it is essential for all participants in the ecosystem to remain proactive and persistent in implementing and maintaining strong security practices.
In conclusion, the suspected hack on CoinEx is a concerning incident that highlights the ongoing security risks in the cryptocurrency industry. The large outflows, which total approximately $27 million, have raised suspicions of a possible breach in the exchange’s security. As the investigation continues, it is crucial for exchanges and users to prioritize security and take necessary precautions to protect their funds. This incident serves as a reminder of the importance of decentralized finance and the need to remain vigilant in the face of evolving security threats.
