Popular cryptocurrency exchange CoinEx is making a remarkable comeback following a devastating $70 million security breach.
A breach that exposed hot wallet keys disrupted critical services and undermined user trust. But now, the exchange has announced the imminent launch of a revamped wallet system and plans to resume deposit and withdrawal services from September 21st. The move targets a list of 211 blockchains and 737 tokens, demonstrating CoinEx’s determination to restore health and security to CoinEx. Huge user base.
🚫🚫 Don’t use your old address. 🚫🚫
🚫🚫 Assets sent there will be lost. 🚫🚫
— CoinEx Global (@coinexcom) September 20, 2023
The cryptocurrency sector experienced a shock when CoinEx, known for supporting a wide range of cryptocurrencies, became the target of a serious security flaw.
Metanews reports that an estimated $53 million in losses occurred, including in cryptocurrencies such as Ethereum (ETH), Tron (TRX), and Polygon (MATIC).
The breach was attributed to a compromised hot wallet with potential ties to North Korea’s Lazarus Group, further highlighting the seriousness of the situation.
Amid the crisis, CoinEx reportedly demonstrated quick decision-making. Deposit and withdrawal services were immediately suspended to prevent further damage and unauthorized access.
The safeguards involved transferring assets from the compromised hot wallets to more secure cold wallet addresses, protecting approximately $89 million in assets, with a large portion in Ethereum (ETH) and Tether (USDT).
Throughout this turbulent period, the exchange remained true to its commitment to its users. CoinEx assured users that despite the breach, assets stored in cold wallets are not affected. CoinEx has communicated plans to leverage the User Asset Security Foundation to offset the financial impact of the breach.
Developing a Comeback Strategy: Modernizing the Wallet System
CoinEx has invested significant resources into building a new wallet system as a cornerstone of its recovery strategy. This redesigned system is ready to support the impressive roster of 211 blockchains and 737 tokens that were previously available on the platform.
September 21st marks the reintroduction of deposit and withdrawal services for 11 major cryptocurrencies, including market leaders such as BTC, ETH, and USDT. CoinEx blog post Said:
“CoinEx will upgrade the deposit addresses for the above assets on September 21, 2023 at 8:00 UTC and generate new deposit addresses for all users. Do not use the old deposit addresses you have saved. The old address will no longer work and any assets sent will be lost forever. Please be sure to double-check that you are using the new address before depositing.”
The listed token deposit address will be updated for added security. A new start requires caution. CoinEx actively warns users against using old deposit addresses, which can lead to irreversible loss of assets.
CoinEx’s future vision
Since its founding in 2017, CoinEx has maintained a stance on the importance of protecting user assets, highlighted by a 100% asset reserve policy. In the wake of the breach, the exchange announced plans to strengthen its security measures.
Recent breaches have highlighted the vulnerabilities and challenges facing cryptocurrency platforms. His CoinEx approach to dealing with this incident is reportedly focused on re-establishing security measures and regaining user trust.
CoinEx’s continued efforts to strengthen security and improve user experience highlight the complexities of maintaining a secure platform in the crypto space, according to people familiar with the matter.