Cryptocurrency exchange WOO X reported a serious incident involving a security breach that led to the withdrawal of $14 million. The breach was triggered by a phishing attack targeting one of its employees.
Circumstances of the Breach
The incident occurred on July 24 and was linked to a targeted phishing attack that compromised a team member’s device, granting attackers limited access to the exchange’s development environment.
The first unauthorized withdrawal was initiated at 1:50 PM (UTC+8). Over the next two hours, additional unauthorized transactions were executed before the breach was detected and contained by 3:40 PM. While some withdrawal attempts were blocked in time, $14 million was successfully drained.
WOO X's Response and Actions
WOO X suspended all withdrawals as a precautionary measure and is conducting an investigation in collaboration with external security experts and other exchanges. The company published six wallet addresses connected to the attacker and is actively monitoring the stolen assets across chains.
The exchange assured that only nine high-value accounts were affected, and user funds remain secure. All affected users will be fully reimbursed.
Context of the Incident in the Crypto Industry
This incident adds to the recent wave of security breaches among centralized exchanges in July. Just days earlier, CoinDCX reported a $44.2 million exploit involving a Solana-to-Ethereum bridge, asserting that all losses would be covered using its reserves.
The security breach at WOO X raises important questions about security on cryptocurrency exchanges and the need for enhanced measures to protect user funds in the face of growing threats.
