A cryptocurrency exchange with a 24-hour trading volume of almost €52 million has been hacked. UK-based EXMO has revealed that cryptocurrency assets including Bitcoin, Ripple, Ethereum and others have been stolen from its hot wallets. Collectively, approximately 5% of EXMO's total assets have been retired. EXMO explained that the incident is still under investigation, but it has identified addresses in the wallet where the stolen funds were deposited. The crypto exchange reported the theft to the appropriate authorities and asked other crypto services to block all accounts linked to the attack. Furthermore, EXMO reiterated that all losses related to this incident will be reimbursed. While EXMO conducts a thorough security review, the exchange asks users not to deposit additional funds. Withdrawals are also on hold at the moment.
Difficult start
Hot wallets refer to places where cryptocurrency is stored, but unlike cold wallets, they are connected to the internet. While this makes it easier to facilitate transactions, active wallets present additional security risks compared to cold wallets, a fact that is growing in importance in light of incidents like EXMO. "It is good practice not to store and hold large amounts of funds in active wallets while trading, but rather to transfer them to a cold hardware wallet (which has the appropriate recovery codes defined and securely stored) or to a standard bank account, according to at the end of the exchange transaction," said Brad Mackenzie, CEO of information security firm Clear Skies. "This is intended to reduce personal exposure and losses in the event of compensation. The EXMO hack represents a early challenge for company to overcome Only received temporary registration status with the UK Financial Conduct Authority earlier in the month Via computer on hold