FixedFloat Hit by $26M Crypto Heist: Bitcoin and Ether Stolen

Tim Hakki
Last updated: | 2 min read
Web3 Lost $127M to Hackers in January 2024 + More Crypto News
Source: Dalle-3

The automated DeFi exchange, FixedFloat, was targeted in a hacking incident that resulted in the loss of 409 Bitcoin (valued at approximately $21.3 million) and 1700 ETH (worth around $4.9 million). This breach was reported by the blockchain cybersecurity Twitter account Officer’s Notes, under the handle @officer_cia.

The exchange itself later confirmed the hack in the same thread.

In response to another X tweeter, the exchange clarified: “Financial losses affected only our service, user funds were not affected. We also want to emphasize that FixedFloat does not perform the functions of a custodial service, that is, it does not store user funds.”

The team also promised to release more information about the attack.

FixedFloat Takes Action On Attack

Cryptonews emailed FixedFloat for comment.

The team replied that it did not immediately report the incident, despite knowing it occured. Instead, it put the service “into maintenance mode to ensure security and minimize losses.”

The spokesperson said their “main focus was on quickly eliminating weaknesses and strengthening overall security, which prevented [the exchange] from making public statements about what happened.”

FixedFloat clarified the attack was not internal and attributed it instead to “flaws” and “insufficient protection” in the exchange’s infrastructure.

The team stated it can’t publicize more details due to an ongoing investigation, but “promise[s] to provide a full report on completion.”

“Currently, we actually have outstanding payment obligations for approximately 30 orders to our users” said FixedFloat.

“These payments will be made immediately after we have resumed the service and are satisfied that it is safe. We guarantee the fulfillment of all our obligations to clients, clarifying that financial losses affected only our service, user funds were not affected.”

How Does FixedFloat Work?

FixedFloat is a fully automated exchange that allows people to trade crypto anonymously without requiring login or KYC details. B

eing non-custodial, users are ultimately in charge of their own cryptocurrencies, unlike centralized exchanges (CEXs) where the platforms often custody their users’ crypto portfolios. FixedFloat is on Bitcoin’s Layer 2, the “Lightning Network”.

As such, it offers users accelerated speeds and lower transaction costs.At the end of last year, FixedFloat celebrated completing 15,000,000 exchanges between over 100,000 customers. It currently supports 67 different cryptocurrencies.

In its statement to Cryptonews, the exchange clarified that it is not a “cryptocurrency mixer,” a label wrongly attributed to it by various crypto publications. The FixedFloat team also strongly denies reports that most of the funds exchanged on the platform are of criminal origin.