Hong Kong-based crypto exchange CoinEx said hackers stole more than $70 million in tokens as a result of compromised private keys. The team wanted to open lines of communication to claw back funds and stated that affected users would be compensated entirely for any lost funds.
CoinEx's initial investigation into the hack blamed the root cause on a compromised private key for its hot wallets. These private keys store exchange assets used for deposits and withdrawals. In order to avoid further losses, CoinEx suspended the withdrawal service, fixed the system vulnerabilities, and transferred the remaining assets from the affected hot wallets. Withdrawal services are expected to gradually resume within seven working days.
The exchange explained that a preliminary investigation pinned the root cause to a compromised private key for its hot wallets.
CoinEx says its team is still investigating the identity of the person responsible for the security breach, and some blockchain security firms believe the attacker to be North Korean hackers Lazarus Group.
Related: Crypto Exchange CoinEX Hacked for Nearly $27M
CoinEx Suspends Deposit and Withdrawal Services, Promises to Compensate Affected Parties
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