It was a grim moment for Hong Kong-based crypto exchange CoinEx when it shared news regarding a formidable security breach on September 12. The news unfolded on the former Twitter X platform that the hacking incident resulted in the loss of $70 million from its hot wallets.
But in less than a week, the exchange team was able to formulate a solution and is in the process of system upgrades and maintenance. As these anti-hack maneuvers are underway, CoinEx has regained its spot as one of the leading exchanges, proving its resilience. Here’s how CoinEx managed to navigate one of the biggest security breaches in the history of crypto exchanges:
The first hack response update from CoinEx came on the X platform to inform all active users regarding isolating suspicious crypto wallet addresses. The exchange and its vigilant team didn’t waste a moment in detecting unusual activities but ended up losing $70 million.
Immediate actions taken by CoinEx
Realizing the security breach, CoinEx notified the community and also assured affected users of receiving 100% compensation for any loss. Even the CEO came out on X and publicly apologized to the CoinEx community of users.
CoinEx collaborated with a dozen other crypto exchanges to identify and isolate suspicious wallet addresses. Each of these wallets is linked to the hacking incident. The exchange team didn’t waste a moment in temporarily suspending the deposit and withdrawal services to ensure the safety of the remaining assets.
After 72 hours of total blackout on the exchange platform, the CoinEx team answered a number of pressing questions from concerned users on X. Additionally, CoinEx has respectfully reached out to other exchanges, kindly requesting their assistance in blacklisting the suspicious wallet addresses. It was a display of solidarity and collaboration within the crypto industry, which is a rare sight.
After securing the platform and ceasing all deposits and withdrawals to assess the situation, CoinEX has laid out its plan to reopen. Currently, the priority is to resume withdrawals for all users. Here’s how CoinEx is planning to strengthen its platform against such attacks in the future.
Working on futuristic security solutions
The only best thing about the unfortunate incident with CoinEx has been the exchange’s positive and consistent support and communication. In recent news, CoinEx revealed that it is currently building a soon-to-be-deployed wallet system that will resume facilities for a total of 211 blockchains and 737 crypto tokens. On September 21, CoinEx reopened deposits and withdrawals for Bitcoin, Ethereum, Tether, USD Coin, and many more. The new system will generate new wallet addresses for all users as the old ones are terminated for being suspicious.
Another note shared publicly mentions that the system resumption will be gradual, and thus the users can expect a significant number of pending orders. But despite all that, the exchange is regaining its former strength as it assured that users’ assets were not compromised during the hack.
Users have reacted positively to the way the exchange was able to handle the situation and restore trust and confidence.
As mentioned earlier, though the news of crypto exchange wallets getting compromised is unfortunate, it’s not unusual. This is why crypto experts and enthusiasts believe in choosing the right kind of exchange platform and never leaving funds idle in an exchange wallet. Here’s how you can choose the most suitable and safe crypto exchange:
Top considerations to make when picking a crypto exchange:
- Make sure to avoid centralized exchanges, which are prone to such hack attempts and have much to lose at the hands of perpetrators.
- Check the security standards of an exchange before opening an account and see if it aligns with your usage goals.
- The safety of funds should be your top priority, so choose an exchange that has an insurance plan or a recovery plan.
- Only the safest of exchanges would share security updates, reports, and analyses to ensure users that their funds are safe.
As we observe CoinEx’s return to normalcy, marked by the resumption of asset withdrawals, it provides a moment for contemplation regarding the essential considerations when selecting a cryptocurrency exchange. This incident underscores the significance of not only technological prowess but also the integrity and accountability of the team in safeguarding user interests.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.