CoinEx Restores Deposits and Withdrawals After $70M Breach

CoinEx Restores Deposits and Withdrawals After $70M Breach

In the wake of a devastating $70 million security breach, the popular cryptocurrency exchange CoinEx is demonstrating a notable resurgence.

A breach, which saw the compromise of its hot wallet keys, led to a suspension of crucial services, shaking the confidence of its users. But now, the exchange has announced the impending launch of a revamped wallet system and plans to reactivate deposit and withdrawal services starting Sept. 21. This move targets a list of 211 blockchains and 737 tokens, showing CoinEx’s determination to restore normalcy and security for its vast user base.

The cryptocurrency sector experienced shockwaves when CoinEx, known for supporting a wide array of cryptocurrencies, became the target of a significant security lapse.

Metanews reports pointed to a loss estimated at $53 million, including cryptocurrencies like Ethereum (ETH), TRON (TRX), and Polygon (MATIC).

The breach was attributed to compromised hot wallets with potential links to the North Korean Lazarus Group, further highlighting the gravity of the situation.

Immediate responses

Amid the crisis, CoinEx reportedly displayed swift decision-making. Deposit and withdrawal services were halted immediately to prevent further damage and unauthorized access.

Protective measures also saw the transfer of assets from the compromised hot wallet to more secure cold wallet addresses, safeguarding approximately $89 million in assets, with Ethereum (ETH) and Tether (USDT) forming a significant chunk.

The exchange stood by its commitment to users during this tumultuous period. CoinEx assured users that assets held in the cold wallet remained unaffected despite the breach. CoinEx communicated its plan to utilize its User Asset Security Foundation to counterbalance the financial fallout from the breach.

Strategizing a comeback: Revamped wallet system

As a keystone of its recovery strategy, CoinEx invested considerable resources in formulating a new wallet system. This redesigned system is poised to support the impressive roster of 211 blockchains and 737 tokens previously available on their platform.

Sept. 21 marks the date for reintroducing deposit and withdrawal services for 11 premier cryptocurrencies, encompassing market leaders like BTC, ETH, and USDT. A CoinEx blog post stated:

“CoinEx will upgrade the deposit addresses for the above assets at 8:00 Sept. 21, 2023 (UTC), and generate new deposit addresses for all users. Please DO NOT use any old deposit addresses you may have saved. The old addresses will NO LONGER work, and assets sent to them will be permanently lost. Please be sure to double-check that you are using the new address before depositing.”

To amplify security, deposit addresses for the listed tokens would be updated. A fresh start demands caution: CoinEx has proactively warned users against utilizing old deposit addresses, which could result in irreversible asset loss.

CoinEx’s vision for the future

Since its inception in 2017, CoinEx has maintained its stance on the importance of user asset protection, underlined by its 100% asset reserve policy. Following the breach, the exchange has indicated plans to bolster its security measures.

The recent breach highlights the vulnerabilities and challenges faced by cryptocurrency platforms. CoinEx’s approach to addressing the incident has reportedly been focused on re-establishing security measures and regaining user trust.

According to people familiar with the matter, CoinEx’s ongoing efforts to reinforce its security and improve the user experience showcase the complexities of maintaining a secure platform in the cryptocurrency sector.

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