Attention: That Cryptocurrency Exchange Was Hacked! These Altcoins Were Stolen!

British cryptocurrency exchange Lykke suspended all transaction services after $22 million in assets were stolen in a cyber attack on its platform. This incident sparked alarm in the cryptocurrency community about the inadequacy of security measures implemented in cryptocurrency exchanges. Here are the details…

Hack shock in the cryptocurrency exchange

UK-based crypto exchange Lykke suspended its trading services after it was discovered that $22 million was stolen in a hack. Lykke announced that it was hacked due to “unauthorized access” detected by the well-known web researcher SomaXBT. According to the statement of MetaMask developer and crypto defense analyst Taylor Monahan, this incident led to an outflow of $ 22 million, which was described as suspicious. Interestingly, this breach occurred a few days after signs of unauthorized access were first noticed on the exchanges, and Lykke was forced to suspend all trading activities on the platform.

As blockchain data highlights, the stolen currencies include Ether, Litecoin, Bitcoin Cash and various other altcoins, in addition to Bitcoin. Following the hacking incident, the stolen Ether was transferred through various accounts and converted into a stablecoin called DAI, which is a typical hacker money laundering technique.

Response and reactions to the attack

Lykke quickly intervened in the situation while announcing that its platforms were under maintenance. At the same time, although many customers reported that their account balances were empty, the company tried to assure its customers that their funds were safe. Lykke CEO Richard Olsen acknowledged the incident in an email to customers and said the company was making every effort to investigate the vulnerability. To appease his customers, Olsen said, “Lykke is a well-capitalized, diversified business. Your funds are in faith.” he used his words.

However, this is not the first time that the cryptocurrency segment has suffered from being targeted by hackers. Just a few weeks ago, another crypto exchange, DMM Bitcoin, announced that it was hacked and suffered a loss of $320 million. This incident highlighted the security issues threatening the crypto asset segment. Additionally, As we reported, just a day ago, the decentralized finance (DeFi) platform UwU Lend Protocol was also hacked and $19.3 million worth of crypto assets were stolen within minutes. These incidents underscore the acute need for improved security measures on digital platforms.

This attack has brought the issue of security back to the fore for cryptocurrency investors. Experts agree that cryptocurrency exchanges should implement stricter security measures and regulators should monitor this branch more closely.

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