Crypto Exchange Loses $22 Million in Hack, Temporarily Shuts Down Services

Indonesian crypto exchange Indodax has experienced a significant security breach, resulting in a loss of about $22 million in various cryptocurrencies.

Following the attack, the exchange has suspended its mobile and web applications to address the situation.

On September 11, blockchain analysis firms such as PeckShield, Cyvers, and SlowMist reported that Indodax’s hot wallets had been compromised. The stolen assets include Bitcoin, Tron, Ethereum, Polygon, Shiba Inu, and other tokens. Investigations revealed that the breach might have originated from a vulnerability in the withdrawal system, allowing the attacker to access the hot wallet.

The hacker managed to steal substantial amounts of Bitcoin, Tron’s TRX, various ERC-20 tokens, Polygon, and Ether from the Optimism blockchain. Cyvers identified over 150 suspicious transactions and noted that the stolen funds were being converted to Ether, likely using mixing services like Tornado Cash to obscure the trail.

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In response, Indodax has temporarily halted its services to conduct a thorough investigation and assured users that their assets are secure. Yosi Hammer from Cyvers speculated that the Lazarus Group, a notorious North Korean hacking collective, could be behind the attack, citing similarities with previous incidents linked to the group.

Indodax’s current reserve balance is reported to be $369 million, potentially available to cover investor losses. This incident follows a similar hack in July involving WazirX, also attributed to the Lazarus Group.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.