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CoinEx Mitigates Effects of Exchange Hack, Here’s How Users React

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Tue, 17/10/2023 - 9:51
CoinEx Mitigates Effects of Exchange Hack, Here’s How Users React
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CoinEx, a multi-product ecosystem of cryptocurrency services, is back to normal operations. The team reorganized security mechanisms and launched emergency communication channels. CoinEx promptly reacted to the hack and its damage in a holistic manner in order to protect its customers.

Crypto platform CoinEx resumes asset withdrawals after hack

CoinEx, a global cryptocurrency exchange, resumes withdrawals of all assets affected by a recent hack. Thus, its clients can use CoinEx just like they did before it was attacked. Clients should, however, be using new addresses for deposits/withdrawals, the team statement says.

As U.Today covered previously, CoinEx was hacked on Sept. 12, 2023. The group of malefactors exploited compromised keys from one of CoinEx's storage wallets. Hackers drained assets across numerous blockchains and attempted to launder them via mixers and other exchanges.

CoinEx immediately launched a complex of emergency measures to mitigate the effects of the hack. The team of engineers moved the remaining assets to safe wallets, halted withdrawals and completely rewrote security designs. The team is going to implement additional stringent measures once the investigation of the hack is over.

The CoinEx CEO issued a heartfelt apology and stressed his company's commitment to providing 100% compensation for all affected customers. This assurance not only displayed the exchange's commitment to safeguarding user funds but also reassured the wider community that CoinEx was serious about making amends. Such a promise in the face of adversity is a testament to CoinEx's courage to take responsibility and its dedication to its customers and their financial well-being.

Per the latest estimations, CoinEx attackers managed to steal over $70 million in equivalent in a variety of cryptocurrencies.

Old challenges, new solutions: Case of CoinEx

Unfortunately, attacks on centralized exchanges are common for the Web3 segment. In the last 12 months, malefactors successfully hacked top CEXes Bitrue and Deribit, while Binance API was also compromised in November 2022.

However, various centralized exchanges followed different strategies while handling the effects of incidents. The CoinEx team emphasized its bet on a transparent, flexible and responsible strategy of compensations and interactions with the userbase.

CoinEx received full support and positive feedback from its customers who held assets on various blockchains before the hack. As such, this pattern of interaction between the service and its users in Web3 might be taken as a textbook example of fruitful mutually beneficial collaboration between different types of actors in Web3.

While centralized cryptocurrency exchanges have always been vulnerable to security flaws, it is not uncommon to hear about incidents in which user funds are compromised. CoinEx's response to the issue, characterized by transparency, prompt action, and a commitment to support its users, demonstrates its integrity and resilience.

Its team demonstrated proactive communication and mobilized the global Web3 community to work together in order to handle the effects of the hack.

With the collaboration between various actors — engineers, traders, security experts and white hat hackers — cryptocurrency exchanges can become safer places for newcomers and professionals in trading, investing and yield farming.

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