Liechtenstein-based cryptocurrency exchange LCX has confirmed the pledge of one of its hot wallets after temporarily suspending all deposits and withdrawals on the platform.
The hack was first identified by PeckShield, a blockchain security company, based on the suspicious transfer of ERC-20 tokens from LXC to an unknown Ethereum (ETH) wallet.
hot wallet engaged? @lcx https://t.co/uL5a7oCFfM
– PeckShield Inc. (@peckshield) January 9, 2022
The exchange soon confirmed the likely hot wallet engagement as it announced the loss of numerous tokens, including ETH, USD Coin (USDC), and other tokens, including its internal LCX token.
Ethereum blockchain-based assets such as ETH, USDC, EURe, LCX, and other assets have moved to
ETH Hacker Wallet: 0x165402279F2C081C54B00f0E08812F3fd4560A05
– LCX (@lcx) January 9, 2022
According to PeckShield’s investigation, LCX lost a cumulative $ 6.8 million after the hacker successfully transferred eight types of tokens including Sandbox (SAND), Quant (QNT), Chainlink (LINK), Enjin Coin (ENJ ) and Maker (MKR).
As of this writing, LCX has not shared any plans to help return stolen funds. However, the company has confirmed that it will take security measures to protect other wallets and assets:
“During this difficult period, we greatly appreciate the support of our clients, other exchanges, security experts, and the broader crypto community.”
LCX has not yet responded to Cointelegraph’s request for comment.
Related: ImmuneFi Reports $ 10 Billion in DeFi Attacks and Losses in 2021
A recent report from security platform ImmuneFi found that crypto companies incurred losses of more than $ 10.2 billion in 2021 due to attacks, scams, and other malicious activities.
As Cointelegraph reported, ImmuneFi identified 120 instances of crypto exploits and rug-pulls, the highest value hack being Poly Network with $ 613 million, followed by Venus and BitMart with $ 200 million and $ 150 million, respectively.