CoinEx Plans to Resume Fund Withdrawals After Compromise of Hot Wallets
Date: 2023-09-18 Author: Dima Zakharov Categories: BLOCKCHAIN
CoinEx announces its plans for recovery following a massive breach and the loss of $70 million
Cryptocurrency exchange CoinEx has disclosed its plans for restoring operations after hackers stole approximately $70 million in various crypto assets. According to representatives of the exchange, the primary reason for the breach was the compromise of the private keys of hot wallets, where the exchange temporarily stores assets for transactions.
To secure user assets, CoinEx suspended fund withdrawals, addressed vulnerabilities, and safely transferred the remaining assets to cold wallets. Currently, the CoinEx team is actively working on deploying an entirely new wallet system that will support 211 blockchains and 737 different assets. The transition to the new system is expected to be completed by September 24, 2023, after which the exchange plans to gradually resume fund withdrawals for users.
While some companies have claimed the involvement of the Lazarus Group in the hack, CoinEx has neither confirmed nor denied this information. The exchange is concentrating its efforts on swiftly creating and deploying a new wallet architecture to ensure the security of user assets and restore trust in the cryptocurrency exchange industry.
CoinEx is focused on enhancing security and implementing a new wallet system to support over 200 blockchains and hundreds of assets
On September 15, 2023, CoinEx published an open letter to the hackers, expressing hope for communication and the possibility of reaching a "reasonable resolution." The situation continues to develop, and investors are closely monitoring updates from CoinEx, anticipating the resumption of fund withdrawals and the exchange's future steps.
In addition to transferring crypto assets to the new hot wallet system and resuming withdrawals, CoinEx has emphasized its readiness to enhance security measures. According to exchange representatives, they have already addressed identified vulnerabilities and transferred assets to cold wallets, demonstrating their commitment to safeguarding user assets in the future.
The transition to a new wallet architecture capable of supporting over 200 blockchains and hundreds of different assets is a significant step forward for CoinEx. This move also underscores the exchange's commitment to long-term stability and growth.
Despite the challenges faced by CoinEx, it remains in communication with the community and actively informs about its actions and plans. Investors and users expect the exchange to rebuild trust in the industry and provide a more reliable and secure platform for cryptocurrency trading.
