Bitrabo Editorial
The Indonesian cryptocurrency exchange Indodax has recently experienced a cyberattack, leading to the loss of around $22 million in various digital currencies.
Indodax Suspends Operations Following Security Incident
As reported by blockchain security firm SlowMist on X, hackers managed to steal various cryptocurrencies including Bitcoin (BTC), several ERC-20 tokens from Ethereum (ETH), as well as TRX and USDT from the Tron (TRX) network, along with assets from Polygon (POL) and the Optimism (OP) blockchain. The overall financial impact is estimated at $22 million.
Indodax has acknowledged the breach and is currently on hold with all operations, citing necessary “maintenance” work. They reassured clients that their funds remain secure, stating:
We are in the midst of a thorough maintenance to verify that our entire system functions correctly. Consequently, access to the INDODAX web platform and application is temporarily limited.
Launched in 2014, Indodax caters primarily to the Indonesian market and reported a trading volume of just over $11 million in the last day.
SlowMist’s investigation has determined that the hack did not originate from a hot wallet breach. Instead, it appears that there was an issue with Indodax’s withdrawal processes, which may have been exploited, allowing hackers to access the exchange’s hot wallet and withdraw funds without detection.
Moreover, the security firm Cyvers observed “numerous suspicious transactions involving wallets across various networks,” noting that a wallet implicated in the hack was seen exchanging tokens for ETH. The hackers are likely to utilize cryptocurrency mixers such as Tornado Cash to conceal their activities going forward.
Data from CoinMarketCap indicates that Indodax holds adequate reserves to cover the loss. Currently, their total reserves stand at $367 million, primarily held in cryptocurrencies like BTC, ETH, PEPE, SHIB, and USDT. However, figures from Arkham Intelligence suggest an even higher reserve total of $409 million.
Increase in Cryptocurrency Heists in 2024
Cyvers AI head Yosi Hammer stated to BSCN that the patterns seen in the Indodax breach bear a resemblance to the operations of the notorious North Korean hacking group Lazarus.
Lazarus is well-known in the cryptocurrency space for executing several significant hacks in recent years. It was recently linked to the breach of the Indian exchange WazirX, which saw losses exceeding $234 million.
A report from Immunefi has highlighted that as hackers adapt to the advancements in crypto security, the total value of stolen assets has surged by 15.5% compared to the previous year for the same period. As of now, BTC is trading at $56,701, reflecting a 1% decrease in the last 24 hours.
Featured Image from Unsplash.com, Charts from CoinMarketCap.com, TradingView.com