Crypto Exchange LCX’s Hot Wallet Compromised

Kelly Cromley

2 years ago

After briefly stopping all kinds of transactions, including deposits and withdrawals, on the platform, Liechtenstein-headquartered crypto exchange LCX acknowledged the hack of one of its hot wallets. PeckShield, a blockchain security firm, discovered the attack after seeing a suspicious movement of ERC-20 tokens to an unidentified Ethereum (ETH) wallet from LXC.

The exchange quickly acknowledged the likely hot wallet hack when it declared the loss of various tokens including ETH, USD Coin (USDC), as well as other cryptotokens such as in-house LCX token. According to PeckShield’s research, LCX lost a total of $6.8 million when the hacker actually moved eight different kinds of tokens, including Sandbox (SAND), Quant (QNT), Chainlink (LINK), Enjin Coin (ENJ), and Maker (MKR).

hot wallet compromised? @lcx https://t.co/uL5a7oCFfM

— PeckShield Inc. (@peckshield) January 9, 2022

ℹ️ Incident Update: We are sorry to announce that one of our hot wallets had been compromised. We have taken security measures to protect other wallets and assets.
1/3

— LCX (@lcx) January 9, 2022

While writing this article, LCX had not disclosed any intentions to assist in the repatriation of the stolen monies. The business has stated that security steps would be taken to safeguard other wallets and digital assets: “During this tough moment, we really appreciate the assistance from our clients, other crypto exchanges, security professionals, and the larger crypto ecosystem.”

According to a new research by security platform ImmuneFi, crypto firms would lose more than $10.2 billion in 2021 because to hacks, frauds, and other unwanted actions. ImmuneFi discovered 120 cases of cryptocurrency hacks and rug-pulls, with Poly Network being the most valuable at $613 million, trailed by Venus and BitMart at $200 million and $150 million, respectively.