LCX Loses USD 8M in a Hot Wallet Hack

 

Crypto exchange LCX fell victim to a hack over the weekend that drained it of nearly USD 8m worth of digital assets. 

The hacker managed to compromise one of the exchange’s hot wallets over the Ethereum (ETH) blockchain, stealing high amounts of ETH, USD coin (USDC), EURe, and SAND Token.

“At 11:23 PM CET on Jan. 9th 2022, LCX’s Technology team detected unauthorized access of one crypto wallet. A total of approx. 7.94M USD of crypto assets were stolen. 0.7M USD have been frozen,” the exchange detailed in a report.

The exchange has not yet disclosed plans for any kind of reimbursement, but insisted that it would “do everything in its power to mitigate the impact from this incident and restore full service as soon as possible.” It has also halted deposit and withdrawal functionalities.

In partnership with financial technology company Monerium, LCX froze (disabled for onchain movement) around 611,000 stolen EURe tokens (worth around USD 692,000).

“Other LCX wallets such as Bitcoin, HBAR, ADA, DGB, TIA or DGMV are not impacted,” the exchange said.

Major security platform ImmuneFi revealed in a recent report that the crypto and decentralized finance (DeFi) protocols have cumulatively lost over USD 10bn in user funds due to hacks and exploitation in 2021. Reportedly, there were 120 instances of crypto-related hacks over the past year.

In the last month of 2021 alone, Cryptonews.com reported at least seven instances of crypto hacks.

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