Japanese Cryptocurrency Exchange Loses $97m to Hackers
A Japanese cryptocurrency exchange has fallen victim to a major cyber-attack, resulting in the loss of $97m in digital assets. Tokyo-based Liquid confirmed the security breach, stating that their warm wallets had been compromised by threat actors.
As a precautionary measure, Liquid has begun transferring assets to cold storage wallets to prevent further losses. The company has also suspended all deposits and withdrawals while they investigate the incident and provide updates to their customers.
Stolen Funds
According to blockchain analysis firm Elliptic, the hackers managed to steal a variety of cryptocurrencies, including Ether, XRP, Bitcoin, Tron, and Stablecoins. The total amount stolen includes $32.5m in Ether, $12.9m in XRP, $4.8m in Bitcoin, $200,000 in Tron, and $9.2m in Stablecoins.
Elliptic also noted that the thieves are in the process of converting $45m worth of Ethereum tokens into Ether using decentralized exchanges like Uniswap and SushiSwap. This tactic allows them to avoid having their assets frozen, as is common with many Ethereum tokens.
Previous Cyber-Attacks on Japanese Exchanges
Liquid is not the first Japanese cryptocurrency exchange to suffer a cyber-attack. In 2014, Mt Gox lost around $500m in a series of hacks, leading to its eventual closure. Other notable victims in the Japanese cryptocurrency market include Coincheck, Zaif, Bitpoint, and UpBit.
Some of these attacks have been linked to North Korea, with a UN report suggesting that the regime may have amassed up to $2bn through raids on banks and cryptocurrency exchanges.
Recent Cyber-Attack on Poly Network
Just last week, Poly Network, a decentralized finance platform, was targeted in one of the largest cryptocurrency thefts in history, losing over $600m to hackers. However, in a surprising turn of events, the “ethical” hackers responsible for the attack returned most of the stolen funds shortly after.
As the cryptocurrency market continues to attract threat actors seeking to exploit vulnerabilities in exchanges and platforms, security measures and vigilance are paramount to safeguarding digital assets and protecting investors.