Cryptocurrency exchange CoinEx is preparing to reinstate deposits and withdrawals for its users, marking a significant step in its recovery process following a $70 million security breach linked to compromised hot wallet private keys that occurred over a week ago.
In prior discussions with Cointelegraph, the exchange had outlined its foremost priority to develop and deploy a brand-new wallet infrastructure. This system would cater to the 211 blockchains and 737 tokens that were part of its service portfolio before the unfortunate hacking incident.
In the most recent statement from CoinEx, they have officially declared the reestablishment of deposit and withdrawal services for several key cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Tether (USDT), USD Coin (USDC), and various other tokens. This service is set to resume on September 21.
To ensure the security of user funds, CoinEx is implementing updates to the deposit addresses for the aforementioned tokens. New deposit addresses will be generated for users, and customers are strongly advised against using old addresses on the platform, as doing so could lead to permanent loss of assets. The exchange is also cautioning users about the potential backlog of pending withdrawals as operations gradually return to normal:
“We will ensure the stability of the new wallet system, and gradually restore deposit and withdrawal services for additional assets.”
CoinEx maintains its commitment to a 100% asset reserve policy designed to protect users from potential security threats. Earlier updates following the security breach affirmed that users’ assets remained unaffected, and any financial losses incurred would be covered by CoinEx’s User Asset Security Foundation.
The breach revealed that hackers gained access to compromised private keys associated with some of CoinEx’s hot wallet addresses, enabling them to withdraw approximately $70 million worth of cryptocurrencies. These hot wallets were used for temporary storage of user deposits, withdrawals, and assets in transit.
Blockchain analytics firm Elliptic has connected the incident to the “Lazarus Group,” a North Korean hacking entity. However, CoinEx continues to investigate the identity of the culprits. On September 20, CoinEx provided additional details about the assets stolen in the breach:
- 231 BTC ($5.7 million)
- 4,953 ETH ($8 million)
- 135,600 Solana (SOL) ($2.6 million)
- 137 million Tron (TRX) tokens ($11 million)
These assets constituted some of the highest-value tokens among the 18 cryptocurrencies impacted by the security breach.
