CoinEx to resume deposits and withdrawals after exploit

CoinEx to resume deposits and withdrawals after exploit

The Resilience of the Blockchain Industry: CoinEx Announces Return of Deposit and Withdrawal Services

In the ever-evolving landscape of the blockchain industry, security breaches remain an unfortunate reality. CoinEx, a renowned cryptocurrency exchange, recently fell victim to a devastating attack that resulted in the theft of approximately $70 million worth of cryptocurrencies from its hot wallets. However, in a show of resilience, CoinEx has now announced its plans to resume deposit and withdrawal services, assuring its users that their assets remain safe.

The Attack and Investigation

On September 12th, CoinEx discovered that 18 different crypto assets, including popular currencies like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Bitcoin Cash (BCH), had been stolen from its exchange. It is important to note that the assets held in CoinEx’s cold wallets were unaffected by the attack. Cold wallets, not connected to the internet, act as an added layer of security for storing cryptocurrencies.

CoinEx wasted no time in launching an investigation, collaborating with blockchain security firms to identify the hackers and trace their addresses in an effort to recover the stolen assets. Intriguingly, these security organizations and on-chain investigators have linked the attack to the North Korean hacker group, Lazarus Group, known for its involvement in various cybercrimes.

CoinEx To Allow Deposit and Withdrawal of Cryptocurrencies

In an update published on September 20, CoinEx unveiled its plan to gradually resume deposit and withdrawal services for select cryptocurrencies, starting from September 21. Users will once again have the ability to interact with popular digital assets such as Bitcoin (BTC), Ethereum (ETH), USDT (on the ERC20 and TRC20 networks), USDC (on the ERC20 network), Tron (TRX), Binance Coin (BNB), and more.

To ensure enhanced security, CoinEx will implement a new wallet system during the resumption process. As part of this upgrade, deposit addresses for specific tokens will be modified, generating new ones for all users. However, CoinEx emphasized the need for users to exercise caution and avoid depositing into old wallet addresses, as doing so may lead to permanent loss of transferred assets. A double-check of the new address was strongly advised.

While CoinEx aims to gradually restore deposits and withdrawals for other cryptocurrencies, the exchange anticipated a backlog of withdrawal requests in the coming days. Processing all these requests may take longer than usual, and hence, CoinEx requested patience from its customers.

The Security of Users’ Funds

Despite the attack, CoinEx has reassured its users that their assets remain intact. In their update on September 16, the exchange stated that the User Asset Security Foundation would compensate users for any financial losses resulting from the incident. Additionally, CoinEx CEO Haipo Yang took to X (formerly Twitter), asserting that affected users would be 100% compensated. Yang’s message emphasized the commitment of CoinEx to safeguard user assets in the face of security threats.

CoinEx has consistently followed a 100% reserve policy to protect user assets, demonstrating its dedication to security. Undeterred by this unfortunate incident, the exchange renews its promise to improve its security infrastructure and invest further in its risk systems.

The Blockchain Industry’s Indomitable Spirit

CoinEx’s decision to resume deposit and withdrawal services underscores the resilience of the blockchain industry. Despite the ongoing challenges posed by security breaches, industry players persevere in enhancing security protocols and mitigating risks. This determination to promote user confidence and protect assets exemplifies the maturity and progression of the blockchain landscape.

In conclusion, CoinEx’s announcement to reopen deposit and withdrawal services is a testament to the unwavering spirit displayed by blockchain industry participants. The incident serves as a reminder of the importance of robust security measures within this burgeoning field. As the industry forges ahead, it is crucial to remember that setbacks can be overcome, and with each challenge, the entire ecosystem becomes stronger and more secure.