LCX exchange faced $6.8M loss, hot wallet compromise

Hot wallet of LCX exchange faced a small hacking attack on its hot wallet and lost around $6.8 Million worth of crypto assets. 

LCX is a Liechtenstein-based crypto exchange. This exchange is a regulated Centralized crypto exchange also this exchange is one of the members of the World Economic Forum’s Centre. 

LCX exchange confirmed that they faced a kind of attack on their hot wallet, so to protect all other funds, the exchange stopped all deposits and withdrawals on the exchange. 

Blockchain security firm PeckShield first identified the attack and found that huge amounts of Ethereum token were transferred from the exchange to an unknown wallet address. 

On this, a Twitter user said that there are chances that the exchange is transferring funds within its system individually. But LCX exchange confirmed that it is part of an attack on the hot wallet and LCX will give a full update about this attack soon. 

Around more than 1 hour later, LCX exchange confirmed through Twitter that their hot wallet was compromised and they lost ETH, USDC, EURe, LCX coins. 

As per all calculations, LCX lost around $6.8 million worth of crypto assets in all. A list of all stolen funds can be seen in the photo provided by PeckShield. 

LCX exchange faced $6.8M loss, hot wallet compromise 1
Details of the stolen funds on LCX. Source: PeckShield.

LCX didn’t say anything about the refund of the lost funds of the users but the exchange confirmed that its users ‘ funds are safe and they are also investigating security incidents to fix them. 

“During this difficult period, we greatly appreciate the support from our customers, other exchanges, security experts, and the broader crypto community.”

Recently, ImmuneFi research found that the crypto industry faced 

$10.2 billion loss in only 2021. This lost amount includes all scams, hacking and malicious activities by bad actors. 

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