<p class="is-style-lead">CoinEx, the Hong Kong-based cryptocurrency exchange, has become the subject of what it called a ‘security incident,’ with multiple suspicious transactions stemming from the platform’s Ethereum hot wallet.</p> 
<p>According to Cyvers Alerts, a hot wallet linked to the exchange continues to be drained of its contents.</p> 
<h2 class="wp-block-heading" id="more-than-27-8-million-in-losses">More than 27.8 million in losses</h2> 
<p>Prior to the official statement from the exchange, alerts from different sources have been turned to this hot wallet. </p> 
<p><a href="https://etherscan.io/address/0x8bf8cd7f001d0584f98f53a3d82ed0ba498cc3de" target="_blank" rel="noopener noreferrer nofollow">Etherscan</a> data does show that the CoinEx hot wallet transferred 4,947 Ether ($7.9 million) to an account that had no prior history. Other affected wallets included <a href="https://crypto.news/price/tron/" rel="noopener noreferrer nofollow">TRON</a> and Polygon (<a href="https://crypto.news/price/polygon/" rel="noopener noreferrer nofollow">MATIC</a>), with estimated combined losses of $27.8 million.</p> 
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   <p lang="en" dir="ltr">🚨ALERT🚨Hey <a href="https://twitter.com/coinexcom?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@coinexcom</a>, Our AI powered <br><br>system has detected multiple suspicious transactions <br><br>with your <a href="https://twitter.com/hashtag/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#Ethereum</a> hot wallet. It is being draining <br><br>right now. You should stop all the withdraws and deposits right now<a href="https://twitter.com/tayvano_?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@tayvano_</a> <a href="https://twitter.com/zachxbt?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@zachxbt</a> <br><br>More info will come <br><br>Stay Vigilant! <a href="https://t.co/I6GON0An4v" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/I6GON0An4v</a></p>— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) <a href="https://twitter.com/CyversAlerts/status/1701592552351359106?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">September 12, 2023</a> 
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<p>PeckShield, the blockchain security and analytics firm, also labeled these transactions “suspicious.”</p> 
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   <p lang="en" dir="ltr">Hi <a href="https://twitter.com/coinexcom?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@coinexcom</a>, suspicious outflow of large funds from <a href="https://twitter.com/hashtag/coinex?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#coinex</a> hot wallets. <a href="https://t.co/C1kCcdnIRQ" target="_blank" rel="noopener noreferrer nofollow">https://t.co/C1kCcdnIRQ</a></p>— PeckShield Inc. (@peckshield) <a href="https://twitter.com/peckshield/status/1701618515932061851?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">September 12, 2023</a> 
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<p>CoinEx later addressed the transactions, calling them a “security incident.” The team detected “anomalous withdrawals” and took necessary actions, according to the <a href="https://twitter.com/coinexcom/status/1701651414991397176" target="_blank" rel="noopener noreferrer nofollow">post</a>. </p> 
<p>“Affected parties will receive 100% compensation for any loss due to this breach. For added security, deposit &amp; withdrawal services are temporarily suspended and will resume after a thorough review,” the company said on X (formerly Twitter).</p> 
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   <p lang="en" dir="ltr">Urgent Notice: Security Incident on CoinEx – Immediate Actions Underway<br><br>On September 12, 2023, our Risk Control System detected anomalous withdrawals from several hot wallet addresses used to store CoinEx's exchange assets. Promptly recognizing the gravity of the situation, we…</p>— CoinEx Global (@coinexcom) <a href="https://twitter.com/coinexcom/status/1701651414991397176?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">September 12, 2023</a> 
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<p>At the time of writing, CoinEx wallets were holding a total of $97.83 million in assets, with $89 million already stored in a cold wallet (approximately 91%).</p> 
<p> You might also like: <a href="https://crypto.news/coinex-faces-new-york-ban-ordered-to-pay-1-7m-in-penalties/" rel="noopener noreferrer nofollow"> CoinEx faces New York ban, ordered to pay $1.7m in penalties </a> </p> 
<h2 class="wp-block-heading" id="even-the-best-aren-t-safe">Even the best aren’t safe</h2> 
<p>Hacks continue to remain prevalent across the industry. Just two days earlier, Vitalik Buterin, the co-founder of Ethereum (ETH) and active community member, also <a href="https://crypto.news/vitalik-buterin-x-account-hacked-as-crypto-scam-posts-increase/" rel="noopener noreferrer nofollow">fell victim</a> to an attack on his social media account, which cost X users an estimated $691,000.</p> 
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<p> Read more: <a href="https://crypto.news/coinex-sued-by-nyag-for-failing-to-register-with-state/" rel="noopener noreferrer nofollow"> CoinEx sued by NYAG for failing to register in the state </a> </p>

CoinEx hot wallets drained of $27.8m worth of crypto in ‘security incident’

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