Thursday, September 28, 2023

In an unfortunate turn of events on September 12, 2023, Coinex fell victim to a cyberattack, resulting in a staggering loss estimated at $54 million as the attackers absconded with substantial quantities of BTC, ETH, TRX, and various other tokens. Swiftly responding to this crisis, Coinex released an open missive addressed directly to the hackers, with the intent to establish a candid and transparent channel for communication.

A Hacked but Hopeful Stance: Coinex’s Quest for a Constructive Resolution

Established in 2017 under the visionary guidance of Haipo Yang, the founder of Viabtc, Coinex directed its message towards the culprits responsible for the $54 million cryptocurrency heist. The exchange underscored its overarching mission, namely, to “enrich the world through blockchain technology,” and intriguingly suggested that the hackers might “share analogous aspirations.” In a bid to kickstart a meaningful dialogue with these assailants, Coinex made a pivotal announcement: a substantial bug bounty would be forthcoming upon the successful return of the pilfered funds.

Coinex’s overture for restitution is not without precedent in the realm of cryptocurrency exchanges. Past instances have seen numerous projects grappling with security breaches make direct entreaties to the wrongdoers. On occasion, this unconventional approach has yielded positive results, with the perpetrators being christened as “White Hat” hackers, amicably returning the ill-gotten assets in exchange for a reward. In its communiqué, Coinex further underscored the detrimental impact such incidents have on user trust, and the exchange, headquartered in Hong Kong, unequivocally stated that such cyberattacks constitute a grave criminal offense, declaring:

Theft of substantial assets through cyber breaches stands as a ‘severe criminal act’ under the jurisdiction of any nation, and legal responsibilities cannot be eluded.

Nonetheless, the prospects of recouping the funds appear somewhat dim if the hackers are affiliated with the enigmatic Lazarus Group, a North Korean hacking syndicate. Suspicions arose when the misappropriated funds were funneled into an address previously associated with the breach. The Lazarus Group, purportedly linked to the government of the Democratic People’s Republic of Korea (DPRK), regrettably boasts no history of returning unlawfully obtained assets.

The decision by Coinex to disseminate an open letter addressing the hackers beckons an array of opinions and perspectives. Feel free to contribute your insights and viewpoints on this matter in the comments section below.

Frequently Asked Questions (FAQs) about Cryptocurrency Cyberattack

What happened to Coinex on September 12, 2023?

Coinex suffered a cyberattack on September 12, 2023, resulting in a loss of approximately $54 million. Hackers managed to abscond with substantial amounts of BTC, ETH, TRX, and other tokens.

What was Coinex’s response to the cyberattack?

Coinex responded by releasing an open letter directly addressed to the hackers. In the letter, the exchange expressed its intention to establish a transparent channel for communication and offered a bug bounty as a reward for the return of the stolen funds.

How does Coinex view the hackers responsible for the attack?

Coinex believes that the hackers might share similar aspirations with the exchange, emphasizing its mission to make the world a better place through blockchain technology.

Why did Coinex choose to communicate with the hackers directly?

Coinex’s decision to communicate directly with the hackers is not uncommon in the cryptocurrency industry. Such communication attempts aim to encourage the perpetrators to return the stolen assets in exchange for a reward, a practice that has succeeded in some cases.

What is the significance of the bug bounty offered by Coinex?

Coinex has offered a substantial bug bounty as an incentive for the hackers to return the stolen assets. This approach is aimed at resolving the issue in a more secure and user-friendly manner.

How does Coinex view the cyberattack in legal terms?

Coinex categorizes the cyberattack as a severe criminal act, irrespective of the jurisdiction. The exchange emphasizes that legal responsibilities cannot be evaded when substantial assets are stolen through cyberattacks.

What is the connection between the hackers and the Lazarus Group?

There are suspicions that the hackers responsible for the Coinex cyberattack may be linked to the Lazarus Group, a North Korean hacking syndicate. These suspicions arose when the misappropriated funds were traced to an address previously associated with another breach. However, the Lazarus Group has no history of returning stolen assets.

What impact does Coinex believe the cyberattack has on user trust?

Coinex acknowledges that such cyberattacks seriously erode user trust in the platform and the broader cryptocurrency industry.

Can users or the public share their opinions on this matter?

Yes, users and the public are encouraged to share their thoughts and opinions on Coinex’s decision to publish an open letter to the hackers. They can do so in the comments section provided.

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1 comment

EconWizard September 16, 2023 - 11:18 am

A $54 mil loss is a major blow. hope they catch the hacker(s) or get the funds back soon!


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