Brokers’ cryptocurrency drops 20% after R$183 million hack

According to analytics firm PeckShield, the portfolios of MuntEx had a “suspicious movement” of a large amount of cryptocurrencies this Tuesday (12), indicating a possible hack of the brokerage that operates internationally.

It didn’t take long for the market to react to the news. The cryptocurrency CoinEx Token (CET), linked to the broker, lost 21.5% of its value in less than an hour this morning.

Trading at US$0.025, CET reached its lowest price in the past 28 months. a Coinex confirmed the hack in a note to Livecoinsand stated that the precise amount of the loss is still being determined, furthermore assuring that the users’ money is safe.

Cryptocurrency broker CoinEx may have suffered a R$183 million hack

In the transaction in question, published by PeckShield, CoinEx’s Ethereum wallet sends 4,946 ethers (ETH) to a new unmarked address. The amount is estimated at R$39 million.

“Hello CoinEx, suspicious movement of large amounts from CoinEx hot wallets.”

Other transactions indicate that the broker may have lost several other ERC-20 tokens stored in the same wallet. The list is long, but the highlight is the transactions of Uniswap (UNI), Chart Token (GRT) It is The sandbox (SAND).

The hack also involved R$2 million worth of the stablecoin Dai (DAI). Memecoins like HarryPotterSonic10 INU (BITCOIN) It is Dogelon (ELON) were also stolen.

Cryptocurrencies allegedly stolen from CoinEx brokerage.  Source: EtherScan.
Cryptocurrencies allegedly stolen from CoinEx brokerage. Source: EtherScan.

According to an analysis by IntoTheBlock, the amount is US$28 million (R138 million).

It is worth noting that the Stake casino went through a similar situation last week and incurred a loss of R$200 million.

CoinEx token collapses after hack

Even before Coinex confirmed the hack, the broker’s cryptocurrency collapsed within minutes, reaching its lowest value since April 2021.

At the time of writing this article, CoinEx Token (CET) is experiencing a small recovery, but the 20% decline is still clearly visible on the monthly chart.

CoinEx Token (CET) is in sharp decline after rumors of a R$138 million hack.  Source: CoinMarketCap.
CoinEx Token (CET) is in sharp decline after rumors of a R$138 million hack. Source: CoinMarketCap.

Finally, on-chain data shows that the hacker is quickly converting the stolen cryptocurrencies to Ethereum, making any freeze action by centralized projects difficult.

But even with the dump, none of these cryptocurrencies saw a drop as big as CET.

Coinex confirms hack and says user funds are safe

In a note Livecoins, CoinEx confirmed the hack and stated that it had detected abnormal withdrawals from several of its hot wallets. According to the company, a special team has been appointed to investigate unauthorized transactions involving $ETH, $TRON and $MATIC.

Coinex has assured that users’ assets are safe and that those affected will be fully compensated. As a precaution, deposit and withdrawal services have been suspended and will resume upon review.

View the full note:

On September 12, 2023, our risk monitoring system detected abnormal withdrawals from several hot wallet addresses used to store assets on the CoinEx exchange. Immediately recognizing the seriousness of the situation, we immediately formed a special investigation team to investigate the matter.

Preliminary assessments indicate unauthorized transactions involving $ETH, $TRON, and $MATIC. The precise amount of the loss is currently being determined, and the affected funds represent only a small portion of CoinEx’s total assets.

We assure all users: your belongings are safe and untouched. Affected parties will receive 100% compensation for any damages resulting from this incident. For added security, deposit and withdrawal services have been temporarily suspended and resumed after a thorough review.

You have our solemn promise that a detailed timeline and comprehensive report on this incident will be shared with the community as soon as possible.

In these challenging times, we sincerely ask for your understanding and patience. Our priority has always been and will continue to be the security and trust of our users. We deeply regret any distress this may have caused and assure you of our continued commitment to protecting your interests.

Source: Live Coins