2022-01-09 08:49:15

Huge Hot Wallet Compromise Over Ethereum Blockchain LCX Loses $6.8M Worth Crypto



The cryptocurrency market always stays a hot topic on the Internet and every single moment, we get to hear some unexpected news every single day. As the market is showing a deep in the last few days and as of January 9, the global crypto market cap is $1.96 trillion that has been decreased 1.53% to the comparison of the last day and the total crypto market volume over the past 24 hours is $91.82 billion which creates a 19.61% decrease. Along with this, the total volume in DeFi is currently at $15.89 billion with 17.31% of the total crypto market in just 24 hours volume.

Due to the massive dip in the market, the Liechtenstein-based crypto exchange platform, LCX has authenticated the compromise of one of its hot wallets after temporarily suspending all the deposits and withdrawals on the platforms. According to the sources, the hack was first noticed by PeckShield, which is a blockchain security company based on the suspicious transfer of ERC-20 tokens from LXC to an unknown Ethereum (ETH) wallet. Since the news came into the spotlight and become the top stories of the Internet, many traders are worrying to take their step further.

Also Read: ETH Price Prediction Today

As per the latest sources, the hot wallet compromise was confirmed soon by the exchange because it announce the loss of several tokens including USD Coin (USDC), ETH, and another token including its in-house LCX token.

The official Twitter page of LCX, tweeted,” We are sorry to announce that one of our hot wallets had been compromised. We have taken security measures to protect other wallets and assets”. Before this tweet, another tweet reads,” Ethereum blockchain-based assets such as ETH, USDC, EURe, LCX, and other assets have been moved to the Hecket ETH Wallet”.

As per the investigation of PeckShield, LCX lost a cumulative of $6.8 million after an unknown hacker successfully transferred eight types of token in which Sandbox (SAND), Quant (QNT), Chainlink (LINK), Enjin Coin (ENJ), and Maker (MKR).

The PeckShield officially announced this information through a tweet and released the names of the tokens. Here is the list which is provided by PeckShield.

Well, during writing this information, the LCX has not shared any plan to help to return the stolen funds. The company has confirmed to take security measures to protect other wallets from unexpected future incidents. Along with this, another report ImmuneFi, a security platform that found crypto companies sustained losses of more than $1.02 billion in 2021 due to hacks, scams, and other venomous activities.

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