Indonesia’s Largest Centralized Exchange Suffers $18 Billion Exploitation: Report

Indodax, Indonesia’s largest centralized cryptocurrency exchange, has suffered an exploit that resulted in a total loss of $18.2 million.

After the incident, the team acknowledged the security breach and temporarily suspended maintenance operations, assuring users that their funds were safe.

Exploitation of $18.2 million

On September 11, Cyvers Alerts reached out to X to report the exchange of suspicious transactions. “Our system has detected multiple suspicious transactions involving your wallets on different networks,” the company said.

ALERT Hey @indodax Our system has detected several suspicious transactions involving your wallets on different networks. The suspicious address already has $14.4 million and trades the tokens for Ether.

Want to keep your business off our alert radar? Learn how to protect… pic.twitter.com/Lzpi5uthXS

— Cyvers Alerts (@CyversAlerts) September 10, 2024

The report also noted that the address already had $14.4 million and was actively trading tokens to Ether.

PeckShield also reported significant exits from Indodax. According to their observations, approximately $15.7 million in cryptocurrency had been diverted from the exchange.

The tracking resource detailed that around 5,204 ETH were parked in an address on Ethereum, along with around 6.8 million POL on Polygon and approximately 380 ETH on Optimisme.

Cyvers Alerts provided more information, noting that more than 150 transactions had been detected, resulting in a total loss of $18.2 million. They also urged Indodax to take immediate steps to mitigate the damage.

Indodax guarantees users the safety of the fund

In response to these reports, the Indonesian exchange acknowledged the potential security issues in a post on X, announcing that it was conducting comprehensive maintenance to ensure the integrity of its platform.

“We are currently performing a full maintenance to ensure the entire system is working properly. During this maintenance process, the INDODAX web platform and application are temporarily inaccessible,” the team said in a translated post.

Despite the ongoing breach, the company reassured its users, stating, “But don’t worry, we can assure you that your balance remains 100% safe in both crypto and rupee.”

The team also thanked users for their patience and trust, stressing that maintenance was essential to ensure the security and smoothness of their transactions. The exchange also promised to provide further updates once the investigation is concluded.

Indodax, formerly known as Bitcoin Indonesia, was established in 2014 by Oscar Darmawan and William Sutanto. Initially focused on Bitcoin and other cryptocurrencies, the platform expanded its offering, resulting in a rebrand in March 2018 as Indodax, short for Indonesia Digital Asset Exchange.

Since its launch, it has become the largest cryptocurrency exchange in the country, with millions of users. It currently supports the trading of more than 160 cryptocurrencies and has a strong presence in the Southeast Asian market. According to CoinGecko data, it has a 24-hour trading volume of $11,430,998 with a trust score of 8/10.

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