LCX loses $6.8M in a hot wallet compromise over Ethereum blockchain

After temporarily suspending withdrawals and deposits, the Liechtenstein-based crypto platform LCX confirmed that one of its hot wallets had been compromised.

PeckShield, a security company that specializes in blockchain technology, first discovered the hack by analyzing suspicious transfers of ERC-20 tokens (from LXC) to an unknown Ethereum wallet (ETH).

Hot wallet stolen? @lcx https://t.co/uL5a7oCFfM
— PeckShield Inc., (@peckshield), January 9, 2022

The exchange quickly confirmed the hot wallet compromise when it announced that many tokens, including ETH and USD Coin (USDC), were lost. This includes its own LCX token.

Ethereum blockchain based assets such as ETH, USDC, EURe, LCX and other assets have been moved to the Hacker ETH Wallet: 0x165402279F2C081C54B00f0E08812F3fd4560A05 2/3
— LCX (@lcx), January 9, 2022

PeckShield’s investigation revealed that LCX had lost $6.8 million cumulatively after the hacker successfully transferred eight types tokens, including Quant (QNT), Chainlink(LINK), Enjin Coins (ENJ), and Maker (MKR).

Information about the theft of funds from LCX. Source: PeckShield.

LCX did not share any plans to return the funds at the time of writing. The company confirmed that it will take security measures to safeguard other assets and wallets.

“During this difficult time, we greatly appreciate your support from our customers and other exchanges, security specialists, as well as the wider crypto community.”

Cointelegraph has yet to receive a response from LCX on its request for comment.

Similar: ImmuneFi reports $10B in DeFi hacks losses and gains across 2021

According to a recent report by security platform ImmuneFi, crypto companies suffered losses exceeding $10.2 billion due to hacks, scams, and other malicious activity in 2021.

Cointelegraph reported that ImmuneFi found 120 instances of crypto exploits or rug-pulls. The highest-valued hack was Poly Network, valued at $613 million. Venus and BitMart, with $200 million each, were next.

https://cointelegraph.com/news/lcx-loses-6-8m-in-a-hot-wallet-compromise-over-ethereum-blockchain

Charles Griffin

Charles Griffin – Business and Transportation I am Charles Griffin with more than 10 years of experience in the Stock market industry, I am energetic about Finance and Business news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of Magnewspress.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Business News category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.  

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