On September 11, 2024, one of Indonesia's largest cryptocurrency exchanges, Indodax, was hacked, resulting in the loss of approximately $22 million in digital assets. This event once again raised the critical issue of cryptocurrency asset security.
Losses from the Indodax Hack
The incident attracted the attention of many in the Indonesian crypto community. The first to report suspicious transactions was Cyvers Alerts, detecting the movement of funds between wallets that already contained $14.4 million. According to SlowMist's estimates, the total loss amounted to $22 million (about 335 billion Indonesian Rupiah). Despite the relatively small loss compared to other global incidents, the case highlighted the importance of security on cryptocurrency platforms.
What Can Be Learned from This Incident?
The Indodax hack revealed several important lessons for cryptocurrency users. One key point is the risk of storing assets on third-party exchanges, which are always vulnerable to cyber attacks. Online wallets (hot wallets) used by exchanges are often connected to the internet and therefore more susceptible to attacks. Additionally, relying on third parties to manage private keys increases the risk of losing assets during a hacking incident. Users must understand that the responsibility for protecting their assets lies entirely with them, and should not entirely rely on trading platforms.
Why Use a Hardware Wallet?
Hardware wallets are one of the safest ways to store cryptocurrencies. They keep private keys offline, making them inaccessible to hackers trying to exploit internet vulnerabilities. In the case of a hack, like the Indodax incident, users with assets stored in hardware wallets remain protected, as their private keys cannot be accessed by anyone other than the owners. Hardware wallets also offer physical protection, making them difficult to access even if the device is stolen. Users get full control over their assets and are protected from losses if their private keys remain solely with them.
The Indodax hack incident highlights the importance of securing cryptocurrency assets. Users must carefully choose storage methods and understand that the responsibility for safeguarding assets lies with them.
Comments