LCX Hot Wallet Hacked, Suffers an $8M Loss

LCX Hot Wallet Hacked, Suffers an $8M Loss

The LCX crypto exchange has been subject to a hack that resulted in a loss of approximately $7.94M worth of digital assets.

Liechtenstein-based exchange LCX has been operating as an official crypto trading and storing platform since 2018, with a built-in hot wallet where users can hold their cryptocurrencies. 

On January 9th, in an official announcement by LCX, the exchange reported that they’ve detected "unauthorized access of one crypto wallet" which led to a transfer of $8M in digital funds to an unknown address.

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LCX’s partner Monerium has managed to withhold the transfer of $0.70M worth of crypto to the unauthorized address. LCX assured that only their Ethereum wallet was compromised, while other digital asset storages for Bitcoin, HBAR, ADA and other crypto remained untouched. 

The exchange took action by pausing all deposits and withdrawals of any digital currency, informed multiple partners, wallet analytics platforms, and sent out a report to the Liechtenstein authorities.

As of yet, LCX has not issued any statement on compensating the targeted wallet, with an ongoing investigation of the incident still in progress.

Dom Z. - Crypto Analyst

by Dom Z. - Crypto Analyst, BitDegree