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DragonEx, a Singapore-based cryptography center, said Tuesday that its platform had been hacked and that an undisclosed amount of user funds had been lost.
The team said:
Several judicial administrations have been informed of this cybercrime case, notably in Estonia, Thailand, Singapore, Hong Kong, etc. We help police officers to investigate. All services on the platform will be closed and the precise situation regarding recovery of badet losses will be announced within a week. For damage to our users, DragonEx will badume the responsibility, in any case.
Can the user funds stored in a crypto be recovered?
According to Joanne Long, an administrator of DragonEx's official Telegram account, the team was able to identify the funds stolen during the exchange.
Fortunately, some of the funds have been sent to Know Your Customer (KYC) compliant and strictly regulated stock exchanges such as Bittrex, based on Long's statement.
Source: DragonEx telegram account
If the funds are stored on a Bittrex portfolio and the DragonEx undergoes the appropriate steps to alert Bittrex and ask for help from the stock market, it is quite possible that some of the portfolios containing stolen funds will be frozen.
The stock market identified other addresses used by hackers to transfer stolen funds from the stock market and the company informed its investors that it was cooperating with other stock exchanges to recover users' funds.
Source: DragonEx telegram account
The company stated that it will badume full responsibility for the theft of user funds and will continue to work with the authorities and other exchanges until all users are compensated.
It may not be possible to recover all the funds lost during the attack, as hackers may have attempted to send funds to different markets and portfolios in the region. purpose of keeping them for an extended period.
A previous study found that some hacking groups targeting cryptocurrency purses held stolen funds for more than a year to transfer money without alarming trade.
A potential problem in the process of recovering user funds could be the loss of company funds alongside user funds.
In an update, the DragonEx team said:
We encountered hacker attacks. The encryption resources of our users and DragonEx are both stolen. International police are investigating. Please wait for the next announcement regarding the exact situation of the claims.
If a significant portion of the company's funds was lost during the hacking attack, which remains unclear, the stock market might not be able to repay users immediately after the end of the year. investigation.
Most importantly, if the stock market funds were stolen, as the DragonEx team said, this raises the question of how far secure refrigerated storage systems have been used to protect stock exchange property and users.
Cold storage is very important
One of the similarities between most security breaches and cryptocurrency swap attacks is the lack of robust cold storage systems.
Exchanges that have never been hacked since their creation, including Coinbase, Binance, Kraken, Gemini and others, store most of their funds in cold rooms, which is an off-the-wall cryptocurrency portfolio. can not be compromised by pirates.
Although the type of infrastructure built by DragonEx to store and secure users' funds remains unclear, the company is committed to recovering user funds and prioritizing the refund process.
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