Hot Wallet Compromise Leads LCX To Lose $8.6 Million

After a hot wallet compromise in an unauthorized transfer of as much as eight types of ERC-20 tokens including ETH, MKR, LINK, and USDC, we can see that LCX lost $6.8 million so let’s find out more in today’s altcoin latest news.

Temporary suspension of all deposits and withdrawals preceded the corroboration from the crypto exchange LCX from Liechtenstein in the case of a hot wallet compromise. The cyber-attack was identified by a blockchain security company PeckShield, on the basis of the dubious transfer of ERC-20 tokens from LXC to an unidentified ETC wallet.

Incident Update: We are sorry to announce that one of our hot wallets had been compromised. We have taken security measures to protect other wallets and assets.
1/3

— LCX (@lcx) January 9, 2022

The hot wallet compromise was then corroborated by the exchange as it stated the loss of quite a few coins, the list includes among others Etherium, USD coin, and the LCX coin. On the basis of PeckShield’s investigation, the successful transfer of the eight types of coins by the hacker resulted in a loss of a collective amount of $6.8 million for LCX. Sandbox, Quant, Maker, Chainlink, and Enjin Coin were part of the types of coins stolen.

hot wallet compromised? @lcx https://t.co/uL5a7oCFfM

— PeckShield Inc. (@peckshield) January 9, 2022

At the time of writing this article, no information about potential plans to assist the return of the stolen assets is shared by LCX. Non the less the crypto exchange stated that it will take additional security measures to protect the remaining wallets and assets:

“During this difficult period, we greatly appreciate the support from our customers, other exchanges, security experts, and the broader crypto community.”

A new report from ImmuneFi, the security platform, made the discovery that cryptocurrency firms suffered losses of over $10.2 billion in the past year as a result of hacks, scams, and other illegal deeds. In the report of ImmuneFi, there are 120 instances of illegal cryptocurrency acquired, the biggest of whom was Poly Network at $613 million, second in place is Venus with $200 million, and BitMart with $150 million.

Details of the stolen funds on LCX. Source PeckShield.

As recently reported, The Poly network drama is coming to an end as the hacker returned the remaining $141 million as per the blog post from the Defi project. As per the announcement, Mr. White Hat gave his private key to a 3/4 multi-signature wallet in an embedded message and retrieved the 28,853 ETH and the 1032 WBTC left and gave Poly Network the green light to return the full asset control to the users. The team had to verify if the private key was genuine and it turned out that it did so the 610 million that was stolen on August 10th are fully restored to the network.

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