The hacked exchange LCX AG lost $ 6.8 million, the original token price rose 15% a day after the incident

Cryptocurrency hacks will continue as we enter 2022, with Tinyman’s first of the year on January 5th. Just 4 days later, Peckshield reported that Liechtenstein-based LCX AG had been hacked and Ethereum tokens worth $ 6.8 million had disappeared.

LCX AG has started notification on Twitter about the compromise of the hot wallet and assured customers that they had taken security measures to protect wallets and other assets.

Deposits and withdrawals are currently suspended. Ethereum tokens such as ETH, USDC, EURe, LCX native tokens and others were moved to the hacker’s ETH wallet: 0x165402279f2c081c54b00f0e08812F3fd4560a05.

The hack took place around 5:00 a.m. on January 9th (i.e. 10:00 PM UTC on January 8th). According to Peckshield, the total loss is estimated at $ 6.8 million, including $ 3.4 million C, $ 2.2 million LCX, $ 504,000 ETH, $ 468,000 SAND, $ 114,000 QNK, $ 47,4,000 LINK, $ 10,8,000 ENJ, and $ 9.7,000 MKR.

Something about LCX AG

LCX operates a regulated cryptocurrency exchange, a decentralized exchange aggregator and a token sales platform. After the hack took place, the platform looks forward to help from the community:

“During this difficult time, we really appreciate the support of our customers, exchanges, security experts and the broader crypto community.”

Hacks become common

Hot wallet hacks are becoming more common. Late last year, Bitmart lost $ 196 million when two hot wallets were hacked on December 5, 2021. The exchange promises a refund, but affected customers keep getting impatient.

AscendEX disabled deposits after moving $ 77 million worth of ERC-20, BSC and Polygon tokens from its hot wallet on 11/12/2021.

The Japanese exchange Liquid Global confirmed a hack of its hot wallet in August 2021. You have moved all assets to cold storage wallets and suspended deposits and withdrawals.

Hot wallets have the advantage of being easy to use because they are always online, including web-based wallets, mobile wallets, and desktop wallets. Cold wallets are offline and often come in the form of USB sticks, also known as hardware wallets. Hardware wallets are immune to hacks.

After hitting a low of $ 0.123 since the time of the hack, the token has risen nearly 15% in the past 24 hours. LCX is issued by LCX AG in accordance with the laws and regulations in Liechtenstein. According to the law firms, LCX can be classified as a utility token in the USA, Singapore and under Liechtenstein law.

Source: TradingView

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