CoinEX, one of the popular cryptocurrency exchanges, allegedly became the target of a massive hack that caused massive losses in hot wallets containing Ethereum (ETH), TRON (TRX) and Polygon (MATIC). The incident took place on Tuesday, September 12, causing a vivid uproar.
Giant losses for CoinEx
The results of a research by independent analysts indicate an extremely drastic depletion of ETH reserves on CoinEx. Reports by Colin Wu, a respected cryptocurrency expert, report the loss of a staggering 4,946 ETH and 354,762 TRX. The reason is said to be an alleged leak of the exchange’s wallets.
The value of the overall loss exceeds $27.8 million. This figure significantly adds to the overall value of high-profile security breaches on cryptocurrency exchanges.
Meanwhile, Wu explains in his latest update:
“CoinEX has transferred the affected assets from the hot wallet to the cold wallet address 0xf54…7E5d. Currently, CoinEx wallets hold $97.83 million worth of assets, of which $89 million rests at cold wallet address 0xf54…7E5d, mostly in the form of ETH worth $51.7 million and $18.23 million in USDT.”
Zero Ethereum reserves
Much more disturbing data, however, was revealed by CryptoQuant’s director of research, Julio Moreno. He pointed out the peculiar movements of ETH listed within CoinEx for quite some time. As he notes:
“The exchange has seen a staggering decline in ETH holdings – nearly 5,000 ETHs have mysteriously disappeared in a single hour. Since May, the total loss is about 40,000 ETH. As a result, ETH reserves on CoinEx are now virtually zero.”
Unrest grows, and CoinEx remains silent
Despite the anxiety and apparent fear emerging around the platform, CoinEx representatives are holding back on making an official statement about the suspected hack.
The rapid depletion of Ethereum reserves on CoinEx signals a potentially serious situation. The dynamics of ETH’s dwindling reserves could have a significant impact on the exchange’s liquidity and, in turn, its ability to meet withdrawal requests from customers.
Stakeholders and the broader cryptocurrency community will certainly be watching closely to see how the exchange responds to these changes. Swift and decisive action, backed by transparent communication, will be required to effectively deal with this difficult situation and find a solution.
At the time of writing this article, among all platforms listed on CoinMarketCap, CoinEx ranks 106th in terms of daily trading volume. The value stands at $28.2 million. The exchange allows trading of 731 assets, which are available in 1114 pairs.