CoinEx to resume service with new wallet system following $70M hack

Cryptocurrency exchange CoinEx is set to resume deposit and withdrawals for its users more than a week after it suffered a $70 million hack due to jeopardized hot wallet private keys.In previous correspondence with Cointelegraph, the exchange outlined its top priority to build and deploy a new wallet system to facilitate activities for the 211 blockchains and 737 tokens that it served prior to the hacking incident.The most current declaration from the exchange reveals the resumption of deposit and withdrawal services of BTC, ETH, USDT, USDC and other tokens from Sept. 21. CoinEx will resume deposits and withdrawals with 11 cryptocurrencies.CoinEx will upgrade deposit addresses for the noted tokens and will generate new deposit addresses for its users. CoinEx customers were encouraged not to deposit into old addresses on the platform, as this would result in properties being permanently lost. The exchange likewise warned of a possibly big number of pending withdrawals at the resumption of its operations:”We guarantee the brand-new wallet system is stable, and we will slowly resume deposit and withdrawal services for more properties.”The exchange maintains that it has actually implemented a 100% property reserve policy to protect users against possible security dangers. Previous updates following the hacking incident also stated that users assets were not affected and that CoinExs User Asset Security Foundation would cover any monetary losses.CoinEx has since exposed that jeopardized personal keys for a number of its hot wallet addresses enabled hackers to withdraw some $70 million worth of cryptocurrencies. The hot wallets were utilized as momentary storage for user deposits, withdrawals and temporary storage.Blockchain analytics firm Elliptic has linked the incident to North Korean “Lazarus Group” hackers, while the exchange informed Cointelegraph that it was still examining the identity of the wrongdoers. CoinEx launched further details of the properties that were stolen in the event on Sept. 20. The hackers managed to withdraw 231 BTC ($5.7 million), 4,953 ETH ($8 million), 135,600 SOL and 137 million TRON tokens. The hackers handled to withdraw 231 BTC ($5.7 million), 4,953 ETH ($8 million), 135,600 SOL ($2.6 million) and 137 million TRON tokens ($11 million), which were some of the greatest worth tokens taken amongst the 18 cryptocurrencies affected by the hack.Cointelegraph has actually reached out to CoinEx to determine if it will refund users on the occasion that properties were impacted or are impacted in the future by the occasion.

Other Questions People Ask

What measures is CoinEx taking to resume service following the $70M hack?

CoinEx is prioritizing the development and deployment of a new wallet system to ensure the security of its users' assets after the $70 million hack. The exchange plans to resume deposit and withdrawal services for 11 cryptocurrencies, including BTC, ETH, and USDT, starting September 21. Users are advised to avoid depositing into old addresses, as this could lead to permanent loss of funds. Additionally, CoinEx has implemented a 100% asset reserve policy to protect against future security threats.

How will the new wallet system affect CoinEx users after the $70M hack?

The new wallet system being introduced by CoinEx aims to enhance security and stability for users following the $70 million hack. This upgrade will involve generating new deposit addresses for users, ensuring that old addresses are no longer used to prevent loss of funds. CoinEx has assured customers that their assets were not affected by the hack and that any potential losses will be covered by its User Asset Security Foundation. Users can expect a gradual resumption of deposit and withdrawal services as the new system is rolled out.

What cryptocurrencies will CoinEx support when it resumes service after the hack?

Upon resuming service, CoinEx will support deposits and withdrawals for 11 cryptocurrencies, including major tokens like BTC, ETH, USDT, and USDC. This decision comes after the exchange's commitment to re-establishing secure operations following the $70 million hack. Users should be aware that new deposit addresses will be generated for these tokens, and they must not use old addresses to avoid losing their assets. The exchange is focused on ensuring a safe environment for all transactions moving forward.

What should users do if they have pending withdrawals after CoinEx resumes service?

Users with pending withdrawals after CoinEx resumes service should be prepared for a potentially high volume of transactions as the exchange gradually reopens its operations. CoinEx has indicated that it will prioritize stability in its new wallet system while managing these withdrawals. Customers are encouraged to monitor their accounts closely and follow any instructions provided by the exchange regarding their pending transactions. It is crucial to ensure that all deposits are made to the new addresses to avoid complications.

How did the $70M hack impact CoinEx's security measures?

The $70 million hack prompted CoinEx to reassess and enhance its security measures significantly. The compromised hot wallet private keys led to unauthorized withdrawals, which has resulted in the exchange implementing a 100% asset reserve policy to safeguard user funds. CoinEx is also focusing on building a more secure wallet system that will support its operations across 211 blockchains and 737 tokens. This incident has underscored the importance of robust security protocols in cryptocurrency exchanges.