Cryptocurrency exchange CoinEx has reportedly been hacked, with assets worth nearly $28 million stolen. According to the latest details of the incident, the crypto exchange’s hot wallets for Ethereum, TRIN and Polygon had been compromised and drained of more than $27.8 million.
Security platforms have pointed to a possible hack, with Web3 security firm Cyvers Alert issuing an alert after their AI system spotted the breach and wallet drain. Blockchain security platform PeckShield also noted the huge flows from CoinEx’ hot wallets.
At the time of going to press, CoinEX has suspended withdrawals and deposits, referring to a wallet maintenance. According to on-chain data, stolen funds amounted to about $18.12 million in ETH, $8.5 million in TRX and $291k in MATIC. Cyvers put the possible causes of the hack to either “access control violations, private key leakage or rug pulling”, and even a possible insider job.
The hack on CoinEX comes as the crypto sector navigates a market lull that has most coins way off their last bull cycle peak. It also highlights the continuing risks and challenges facing the crypto industry as it trends towards mainstream adoption. Experts see the growing institutionalization of crypto via ongoing backing from the likes of BlackRock as critical to its maturity.