Crypto exchange Lykke suspends withdrawals after $20 million hack
Date: 2024-06-11 Author: Gabriel Deangelo Categories: BUSINESS
On June 4, 2024, the Lykke cryptocurrency exchange was subject to a hacker attack. Representatives of the platform confirmed the incident and reported a temporary suspension of withdrawals for security reasons. The preliminary damage from the hack amounted to $20 million, affecting both the British division of Lykke UK and Lykke Corp AG.
Exchange reaction and actions
After discovering the exploit, the Lykke team decided to suspend withdrawals for all users. This was done to prevent further losses and ensure the safety of assets. The company apologized to affected users and said it had "solid capital reserves and a diversified portfolio" that it said would allow it to withstand potential losses.
Lykke is a centralized cryptocurrency exchange launched in 2015. The company’s official website states that the exchange provides “commission-free cryptocurrency exchange” services. The foundation of the exchange is attributed to a famous broker, which emphasizes its reliability and professionalism.
Incident investigation
The exploit was discovered by blockchain analyst SomaXBT, who reported that the attackers took possession of 158 BTC and 2161 ETH. At first, the Lykke team tried to hide information about the hack, which caused criticism from the community. Later, representatives of the platform acknowledged the problem and stated that they were able to find out the IP address of the attacker. This and other data will be used to conduct a criminal investigation.
Users began complaining about problems with the operation of the exchange as early as June 8, 2024. The next day, the exploit became known, causing a wave of outrage and concern among customers. Lykke apologized and assured users of its financial stability.
Comparison with other incidents
The Lykke incident is reminiscent of the recent hack of the UwU Lend platform, which lost $19.5 million. The UwU Lend protocol was suspended while the investigation was conducted, which also highlights the seriousness of the security situation in the cryptocurrency industry.
The hacking of the Lykke exchange became a serious test for both the company and its users. The suspension of withdrawals and subsequent investigation shows how important it is to ensure security and transparency in the operation of cryptocurrency platforms. While Lykke maintains its ability to deal with the fallout from the attack, the incident highlights the need to continually improve security measures and respond quickly to threats.
