Thursday, June 20, 2024

A hot wallet compromise on the Ethereum blockchain costs LCX $6.8 million.

LCX exchange recently confirmed that one of its hot wallets was compromised and they had disabled all the withdrawals and deposits on the platform for the time being. PeckShield, their blockchain security company, identified the hack first after they saw a very suspicious transfer of the ERC-20 tokens from LXC to one Ethereum wallet.

The loss was later confirmed by MXC and they said that they had lost many tokens, including USD Coin (USDC), Ether (ETH), and even some of their own in-house tokens.

Peckshield investigated and later concluded that the exchange had lost $6.8 million and up to 8 types of tokens were transferred. The Tokens also included are Quant (QNT), Sandbox (SAND), Enjin Coin (ENJ), Maker (MKR), and Chainlink (LINK).

LCX has not shared its plan on recovering these tokens or whether a further investigation will take place or not. In a recent report by ImmuneFi, it was noticed that the crypto industry loses over $10.2 billion due to hacks and scams itself. This was just the figure in 2021 itself.

ImmuneFi has been able to identify more than 120 cases where crypto enthusiasts have either been scammed or hacked. The biggest ones were the Poly Network rug pull that was worth $613 million, followed by Venus at $200 million and BitMart at $150 million.

If you are new in crypto, it is best that you also pay equal attention to safeguarding your assets. This way, you are safe with your coins and token no matter what.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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