Lykke Exchange suffers hacking attack loses 22 million and halts trading
Key Points:
Lykke, a UK-based cryptocurrency exchange, recently stopped trading due to a $22 million hack.
Despite claims of quick response and client fund security, concerns have arisen regarding Lykke’s security and user funds.
Lykke is collaborating with a cybersecurity company to recover funds and prevent future breaches.
In a shocking turn of events for the cryptocurrency community, the UK exchange Lykke abruptly halted all trading activities. The reason? A suspected hack that led to a massive loss of $22 million. This incident not only poses a significant setback for Lykke but also raises serious doubts about the safety of digital assets. How did this breach occur? And what implications does it have for the future of cryptocurrencies? Keep reading to find out.
Alert! Security Breach Detected…
Lykke disclosed an incident of “unauthorized access” to its platform after a web investigator named SomaXBT conducted a thorough investigation. This hack resulted in substantial withdrawals of various digital assets such as Bitcoin, Ether, Litecoin, and Bitcoin Cash, according to on-chain data.
Taylor Monahan, a MetaMask developer and crypto security expert, was among the first to highlight the unusual transactions.
Responding to the escalating threat, Lykke promptly halted all trading operations to prevent further losses. Adding to the complexity, the stolen Ether was swiftly converted into DAI, a cryptocurrency commonly used by hackers to obfuscate their activities.
Reassuring the Public
Richard Olsen, the CEO of Lykke, acted swiftly to reassure users about the security of their funds, despite reports of diminished account balances. Olsen reassured users by stating, “Your funds are safe because Lykke is a well-diversified company with sufficient cash reserves.”
Lykke confirmed the attack through a tweet, acknowledging that both Lykke UK and Lykke Corp AG were targeted on June 4th. The exchange immediately implemented containment measures, shutting down various systems to prevent further harm, and launched a comprehensive review to address security vulnerabilities. Internally, efforts are ongoing to identify the perpetrators, with law enforcement agencies conducting a criminal investigation into the breach.
On a positive note, to strengthen their response, Lykke has enlisted the help of an external cybersecurity firm to prevent future thefts and recover the lost assets.
Despite the trading halt causing ripples in the cryptocurrency world, highlighting the risks faced by market participants, Lykke is working diligently to resolve the situation. The exchange remains closed temporarily as a precautionary measure to contain the fallout and restore stability to the platform.
In Conclusion:
Can Lykke rebuild user trust? Share your thoughts.
Tags: Hack