In early June, the U.K.-based cryptocurrency exchange Lykke reported a substantial cyberattack resulting in the theft of over $22 million worth of crypto assets.
Details of the Attack
Lykke disclosed on June 10 via a post on X that its infrastructure had been compromised on June 4. The revelation came after web3 threats researcher, @somaxbt, brought the incident to light through a series of X posts. The hackers managed to withdraw a significant amount of cryptocurrency, specifically 158 BTC and 2,161 ETH, from the exchange’s wallet.
Immediate Response and Assurance
The exchange acted swiftly to mitigate the damage by shutting down affected systems. Lykke assured its users that the security breaches had been thoroughly examined and addressed. Despite not disclosing the exact cause of the hack, the exchange reassured customers of its financial stability, emphasizing its robust capital reserves and diverse portfolio.
“Clients’ funds are safe and will be recovered,” Lykke stated. “The internal investigation conducted identified the IP addresses of the attacker, who stole more than $22 million of crypto assets.”
Operational Impact
In response to the breach, Lykke has temporarily halted all withdrawals and deposits as a precautionary measure. The platform remains inactive until further notice, with no specified timeframe for the resumption of normal operations.
Comparison to Other Incidents
This incident marks the second-largest crypto theft in the second quarter of this year, trailing only behind the $300 million hack on the Japanese Bitcoin exchange DMM on May 31. DMM reported the loss of over 4,500 BTC from customer wallets and committed to full reimbursement. To address the financial impact, DMM announced plans to raise $320 million to compensate affected users.
Conclusion
The Lykke hack underscores the ongoing security challenges facing cryptocurrency exchanges. While Lykke has taken steps to address the breach and reassure its users, the incident highlights the need for enhanced security measures in the crypto industry to prevent such significant losses in the future.
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