Indodax Crypto Exchange Suffers $22 Million Hack: Bitcoin, Ethereum, and More Stolen
Introduction: In a major security breach, Indonesian cryptocurrency exchange Indodax suffered a devastating attack on its hot wallets, resulting in the loss of approximately $22 million in various cryptocurrencies. The hack, which affected Bitcoin (BTC), Ether (ETH), Tronix (TRX), Polygon (POL), Shiba Inu (SHIB), and other tokens, has prompted the exchange to temporarily suspend all operations as it investigates the incident.
The Attack: What Happened? |
| The breach was first detected on September 11, 2024, when multiple blockchain security firms, including PeckShield, Cyvers, and SlowMist, alerted the crypto community of the attack on Indodax’s hot wallets. The hacker successfully withdrew large amounts of cryptocurrency, exploiting vulnerabilities in the exchange’s withdrawal system and other critical infrastructure.
According to SlowMist’s findings, a flaw in Indodax’s withdrawal system allowed the attacker to siphon funds from the exchange’s hot wallets. Meanwhile, Cyvers suggested that additional systems, such as the signature machine, might have been compromised as well. The hacker then initiated over 150 suspicious transactions across multiple blockchain networks, converting a portion of the stolen funds into Ether (ETH). |
The Stolen Assets |
| The attack led to significant losses in a variety of digital assets: |
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| The hacker, after obtaining these funds, began converting them into Ether. Once in the form of ETH, such stolen funds are often routed through crypto mixing services like Tornado Cash, making it difficult for investigators to trace the movement and final destination of the assets. |
Indodax’s Response: Shutting Down Operations |
| Following the discovery of the breach, Indodax quickly acknowledged the attack and informed its users of the incident through a public statement. In an effort to contain the situation, the exchange has temporarily suspended all trading, withdrawals, and other services on both its mobile and web platforms. The platform is working with security experts to investigate the breach and restore its operations. |
A Rising Trend: Crypto Hacks Linked to North Korean Hackers |
| This breach comes amidst growing concerns about the involvement of North Korean hacking groups in the crypto world. In July, another major hack targeted crypto exchange WazirX, leading to a staggering loss of $235 million. The attack was attributed to the infamous Lazarus Group, a state-sponsored hacking team based in North Korea.
Blockchain forensics firm Elliptic and cryptocurrency investigator ZachXBT have both noted similar patterns and techniques in the Indodax and WazirX hacks. These incidents highlight the increasing sophistication of cybercriminals targeting the crypto industry, with North Korean groups playing a significant role in some of the largest heists. |
Conclusion
The hack on Indodax serves as a reminder of the persistent security risks facing cryptocurrency exchanges. While the exact identity of the hackers remains unknown, the incident underscores the need for stronger security measures and vigilance across the industry. As Indodax works to recover from the attack, the broader crypto community continues to grapple with the ever-present threat of cybercrime in the Web3 era.
Stay tuned for updates as Indodax releases further details on the breach and its ongoing investigation.
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