LCX, a crypto exchange based in Liechtenstein, recently confirmed that they were a victim of a hot wallet hack during the weekend, which took nearly $8 million worth of digital assets. The hacker compromised one of the hot wallets in the crypto exchange using the Ethereum (ETH) blockchain, and they succeeded in taking massive amounts of ETH, USD coin, EURe, and SAND Tokens.
According to a detailed report published by LCX, the company’s team detected unauthorized access last January 9, 2022, on a certain crypto wallet. As a result, approximately $7.94M worth of crypto assets were taken, while $0.7M has been frozen.
The exchange still hasn’t revealed any plans they may have regarding reimbursement. However, it assured users that it would do everything it can to alleviate the hack’s impact “and restore full service as soon as possible.” Since the unfortunate event, LCX has stopped activities related to depositing and withdrawing.
Partnering with Monerium, a financial technology company, the crypto exchange froze approximately 611,000 stolen EURe tokens (around $692,000). As for the other wallets such as Bitcoin, HBAR, ADA, DGB, TIA, or DGMV, the platform assures users that the hack doesn’t impact them.
ImmuneFi, a renowned security platform, divulged in a recent report that both crypto and DeFi protocols had lost more than $10 billion in user funds back in 2021 because of hacks and security breaches. Notably, there have been 120 instances of crypto-related hacks in the past year alone.