Indonesia's leading cryptocurrency exchange Indodax suffered a major security breach resulting in losses of approximately $20.5 million. According to blockchain security firm Cyvers, the exploit affected multiple blockchains and was detected following suspicious transactions from the exchange's hot wallet.
Details of the Exploit
According to Cyvers, the exploit affected several cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Tron (TRX), and others. Initial estimates placed the losses at $18.2 million, but the latest tally revealed a total loss of $20.58 million. The breakdown of losses includes $13.3 million in Ethereum (ETH), $2.5 million in Tron (TRX), $2.5 million in Polygon (MATIC), $1.4 million in Bitcoin (BTC), and $883,000 in Optimism (OP).
Indodax's Response
Indodax responded to the attack by temporarily taking its platform down for maintenance. The company reassured users that both crypto and rupiah funds were safe. In a statement on X (formerly known as Twitter), Indodax announced: "We have identified a potential security issue and are conducting complete maintenance to ensure the safety of our platform. Your balances remain secure." While Indodax emphasized the safety of client funds, the exchange has not yet provided further details about how the breach occurred or the measures being taken to prevent future incidents.
Previous Security Challenges
This is not the first time Indodax has faced security-related issues. In June 2023, Indonesian authorities arrested two fraudsters who impersonated Indodax on fake social media accounts, according to BeInCrypto. These individuals lured victims with fake investment opportunities, stealing around 625 million Indonesian Rupiah (approximately $40,500). While this incident was unrelated to the current exploit, it underscores the security challenges faced by the exchange.
The Indodax breach is just one in a series of high-profile crypto attacks this year. According to Immunefi’s Q2 2024 Crypto Losses Report, the crypto industry has seen a significant surge in cybercrime. In Q2 alone, nearly $570 million was stolen across various platforms, following $200 million in losses during Q1.
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