The cryptocurrency exchange CoinEx is making acomeback after a devastating $70 million hack. The exchange announced today (Friday) that it had taken measures to rebuild its wallet system and ensure the safetyand security of its users’ assets.
As a result, CoinEx is now gradually resuming depositand withdrawal services for a substantial number of cryptocurrencies, totaling190. The platform has asked users to use new deposit addresses toprevent permanent loss of assets.
Navigating Challenges and Re-Building Trust
“The wallet system is operating safely andsteadily at present. We will gradually resume deposit and withdrawal servicesfor the remaining 500+ cryptos,” the exchange said.”Since the resumption of operations will be processed frequently, there will beno further or separate announcements for each crypto.”
— CoinEx Global (@coinexcom) September 22, 2023
The exchange has implemented a 100% asset reservepolicy, providing an added layer of protection against potential securitythreats. Notably, CoinEx assured its users that their assets were not affectedby the hack and that any financial losses would be covered by CoinEx’s UserAsset Security Foundation.
The exchange found itself amid a security crisisafter suffering a suspected hack this month that compelled the platform tohalt all withdrawals. The incident was triggered by the detection of abnormalwithdrawals from several hot wallet addresses storing CoinEx’s exchange
assets.Initial estimates suggest that the losses could tally up to a staggering $70 million and involved Ethereum (ETH), Tron (TRON), and Polygon (MATIC).
Urgent Notice: Security Incident on CoinEx – Immediate Actions Underway
On September 12, 2023, our Risk Control System detected anomalous withdrawals from several hot wallet addresses used to store CoinEx’s exchange assets. Promptly recognizing the gravity of the situation, we…
— CoinEx Global (@coinexcom) September 12, 2023
Founded in 2017, CoinEx quickly established itselfas a prominent crypto exchange, particularly through its focus on Bitcoin
Cash(BCH). In recent years, the exchange expanded its offerings, including futurestrading, leveraged trading, options trading, and access to over 100 tokenprojects.
Meanwhile, CoinEX decided to cease its operations in New York in June, following a settlement agreement with the Officeof the New York Attorney General (NYAG). Additionally, the exchange, based inHong Kong, agreed to pay $1.7 million, including refunds to investors, inresponse to allegations of improper registration and misrepresentation as acryptocurrency exchange.
CoinEX Faces Regulatory Heat
CoinEX found itself in the regulatory crosshairs after the NYAG, Letitia James, accused the exchange in February of failing toproperly register as a securities and commodities broker-dealer. On top ofthat, the exchange faced allegations of misrepresenting itself as acryptocurrency exchange.
Attorney General James said: “Our laws aredesigned to protect New Yorkers, and when companies ignore them, they putresidents, investors, and businesses at risk. The days of crypto companies likeCoinEx acting like the rules do not apply to them are over. My office willcontinue to protect New York investors and ensure our state’s laws arefollowed.”
In addition to the financial settlement, CoinEX wasprohibited from creating new accounts for U.S. customers, although existingcustomers could still withdraw their cryptocurrency holdings. The exchange wasalso ordered to implement geo-blocking measures to prevent new IP addressesfrom New York from accessing its web and app trading platforms.
The cryptocurrency exchange CoinEx is making acomeback after a devastating $70 million hack. The exchange announced today (Friday) that it had taken measures to rebuild its wallet system and ensure the safetyand security of its users’ assets.
As a result, CoinEx is now gradually resuming depositand withdrawal services for a substantial number of cryptocurrencies, totaling190. The platform has asked users to use new deposit addresses toprevent permanent loss of assets.
Navigating Challenges and Re-Building Trust
“The wallet system is operating safely andsteadily at present. We will gradually resume deposit and withdrawal servicesfor the remaining 500+ cryptos,” the exchange said.”Since the resumption of operations will be processed frequently, there will beno further or separate announcements for each crypto.”
— CoinEx Global (@coinexcom) September 22, 2023
The exchange has implemented a 100% asset reservepolicy, providing an added layer of protection against potential securitythreats. Notably, CoinEx assured its users that their assets were not affectedby the hack and that any financial losses would be covered by CoinEx’s UserAsset Security Foundation.
The exchange found itself amid a security crisisafter suffering a suspected hack this month that compelled the platform tohalt all withdrawals. The incident was triggered by the detection of abnormalwithdrawals from several hot wallet addresses storing CoinEx’s exchange
assets.Initial estimates suggest that the losses could tally up to a staggering $70 million and involved Ethereum (ETH), Tron (TRON), and Polygon (MATIC).
Urgent Notice: Security Incident on CoinEx – Immediate Actions Underway
On September 12, 2023, our Risk Control System detected anomalous withdrawals from several hot wallet addresses used to store CoinEx’s exchange assets. Promptly recognizing the gravity of the situation, we…
— CoinEx Global (@coinexcom) September 12, 2023
Founded in 2017, CoinEx quickly established itselfas a prominent crypto exchange, particularly through its focus on Bitcoin
Cash(BCH). In recent years, the exchange expanded its offerings, including futurestrading, leveraged trading, options trading, and access to over 100 tokenprojects.
Meanwhile, CoinEX decided to cease its operations in New York in June, following a settlement agreement with the Officeof the New York Attorney General (NYAG). Additionally, the exchange, based inHong Kong, agreed to pay $1.7 million, including refunds to investors, inresponse to allegations of improper registration and misrepresentation as acryptocurrency exchange.
CoinEX Faces Regulatory Heat
CoinEX found itself in the regulatory crosshairs after the NYAG, Letitia James, accused the exchange in February of failing toproperly register as a securities and commodities broker-dealer. On top ofthat, the exchange faced allegations of misrepresenting itself as acryptocurrency exchange.
Attorney General James said: “Our laws aredesigned to protect New Yorkers, and when companies ignore them, they putresidents, investors, and businesses at risk. The days of crypto companies likeCoinEx acting like the rules do not apply to them are over. My office willcontinue to protect New York investors and ensure our state’s laws arefollowed.”
In addition to the financial settlement, CoinEX wasprohibited from creating new accounts for U.S. customers, although existingcustomers could still withdraw their cryptocurrency holdings. The exchange wasalso ordered to implement geo-blocking measures to prevent new IP addressesfrom New York from accessing its web and app trading platforms.
