LCX loses $6.8M in a hot wallet compromise over Ethereum blockchain

Liechtenstein-based crypto trade LCX has confirmed the compromise of considered one of its hot wallets after briefly suspending all deposits and withdrawals on the platform. 

The hack was first recognized by PeckShield, a blockchain safety firm, primarily based on the suspicious transfer of ERC-20 tokens from LXC to an unknown Ethereum (ETH) wallet.

The possible hot wallet compromise was quickly confirmed by the trade because it introduced the lack of quite a few tokens together with ETH, USD Coin (USDC) and different tokens together with its in-house LCX token.

Based on PeckShield’s investigation, LCX misplaced a cumulative of $6.eight million after the hacker efficiently transferred eight varieties of tokens that included Sandbox (SAND), Quant (QNT), Chainlink (LINK), Enjin Coin (ENJ) and Maker (MKR).

Details of the stolen funds on LCX. Source: PeckShield.

At the time of writing, LCX has not shared any plans to assist return the stolen funds. However, the corporate has confirmed to take safety measures to guard different wallets and belongings:

“During this difficult period, we greatly appreciate the support from our customers, other exchanges, security experts, and the broader crypto community.”

LCX has not but responded to Cointelegraph’s request for remark.

Related: ImmuneFi report $10B in DeFi hacks and losses across 2021

A current report from safety platform ImmuneFi discovered that crypto corporations incurred losses of over $10.2 billion in 2021 as a result of hacks, scams and different malicious actions.

As Cointelegraph reported, ImmuneFi recognized 120 cases of crypto exploits and rug-pulls, the highest-valued hack being Poly Network at $613 million, adopted by Venus and BitMart with $200 million and $150 million, respectively.