The Liechtenstein crypto exchange LCX has confirmed the compromise of one of its hot wallets after all deposits and withdrawals on the platform were temporarily suspended.
The hack was first identified by PeckShield, a blockchain security company, based on the suspects transfer of ERC-20 tokens from LXC to an unknown Ethereum (ETH) Wallet.
Hot wallet compromised? @lcx https://t.co/uL5a7oCFfM
– PeckShield Inc. (@peckshield) January 9, 2022
The likely hot wallet compromise was soon confirmed by the exchange when it announced the loss of numerous tokens, including ETH, USD Coin (USDC) and other tokens, including the in-house LCX token.
Ethereum blockchain-based assets like ETH, USDC, EURe, LCX and other assets have been added to the
Hacker ETH wallet: 0x165402279F2C081C54B00f0E08812F3fd4560A05
2/3
– LCX (@lcx) January 9, 2022
Based on PeckShield’s investigation, LCX lost a cumulative $ 6.8 million after the hacker successfully transferred eight types of tokens including sandbox (SAND), quant (QNT), chainlink (SHORTCUT), Enjin Coin (ENJ) and Maker (MKR).
Details on the stolen funds on LCX. Source: PeckShield.
At the time of writing, LCX has not disclosed any plans to return the stolen funds. However, the company has confirmed it is taking security measures to protect other wallets and assets:
“During this difficult time, we really appreciate the support of our customers, other exchanges, security experts and the broader crypto community.”
LCX has not yet responded to Cointelegraph’s request for comment.
Related: ImmuneFi reports $ 10 billion in DeFi hacks and losses in 2021
A recent report from security platform ImmuneFi found that crypto companies suffered over $ 10.2 billion in losses from hacks, scams, and other malicious activity in 2021.
As reported by Cointelegraph, ImmuneFi identified 120 instances of crypto exploits and rug-pulls, with the highest rated hack being Poly Network for $ 613 million, followed by Venus and BitMart with $ 200 million and $ 150 million, respectively.
