CoinEx Hacking Results in Losses Exceeding $70 Million - Full Coverage on Damages and Future Measures

In-depth report on the massive CoinEx hacking incident that resulted in losses exceeding $70 million.

Get the latest information on what happened, how CoinEx is responding, and what it means for the cryptocurrency market.

Learn about future steps to ensure security and plans for compensating affected users.

CoinEx Explains Losses and Future Steps After Recent Hacking Incident

Cryptocurrency exchange CoinEx issued a follow-up report on September 15, 2023, detailing the extent of the damages and the future course of action regarding the recent hacking incident.

While initial reports suggested that the estimated amount of lost cryptocurrency assets exceeded $27 million, CoinEx's official statement declares that the estimated loss as of September 15, 2023, stands at around $70 million.

However, CoinEx reassures that the assets compromised form only a small fraction of its net assets. The exchange reiterated its earlier pledge to fully compensate all affected users.

What Happened and Why

At 21:20 UTC on September 12, 2023, CoinEx's risk management system detected abnormal activities in several hot wallets used for storing the company's assets.

Initial investigations reveal that the breach occurred due to compromised private keys of the hot wallets. The precise reasons are currently under investigation.

Post-Hack Security Measures

Upon detecting the hack, CoinEx immediately took the following steps:

1. Suspended all cryptocurrency deposits and withdrawals, halting the hot wallet servers.
2. Transferred remaining assets to a secure address.
3. Rebuilt and redeployed the wallet system.
4. Initiated a stringent investigation led by the CoinEx wallet team and security team.
5. Reached out to other exchanges to freeze accounts related to the hackers.

How Much Was Stolen in the Hack?

The estimated loss as of September 15, 2023, is approximately $70 million, which is a minor fraction of CoinEx's net assets. CoinEx promises to fully compensate the losses incurred by its users.

Compensation Plans for Stolen Assets

Details about the compensation plans are still being finalized. An announcement will be made in due course, detailing how the compensation will be distributed per coin.

Impact on Other Products Like ViaBTC and ViaWallet

Other product lines of CoinEx operate independently with their own risk management systems, hence they are not affected by this security incident. Users can continue using these services with confidence.

Future Plans to Ensure Security

CoinEx plans to:

• Upgrade its security protocols and risk management systems.
• Increase the frequency of vulnerability assessments.
• Enhance early warning mechanisms for potential attacks.
• Establish a CoinEx Risk Prevention Fund.
• Collaborate proactively with security firms and industry partners for infrastructure rebuilding.

Detailed List of Affected Cryptocurrency Assets and Amounts

The affected cryptocurrencies include BTC, ETH, XRP, BCH, SOL, among others. Specific amounts per asset type are still being investigated. Assets stored in CoinEx’s cold wallet are not affected.

Message to the Hacker

In a separate statement on September 15, CoinEx extended an invitation to the hackers for a dialogue, offering substantial bug bounties as rewards if the stolen assets are returned.

CoinEx further acknowledged the hacker's skills, proposing cooperation as a "white hacker."