The security measures implemented by cryptocurrency exchanges are being questioned. Lykke CEO has assured customers that the company is conducting a thorough investigation. Following a suspected cyberattack resulting in the theft of $22 million, UK-based exchange Lykke has decided to halt its trading services. This incident has raised concerns about the security protocols of cryptocurrency exchanges.
After web investigator SomaXBT discovered unauthorized access to Lykke’s platform, the company admitted to the breach. Crypto defense expert Taylor Monahan, known for her work on MetaMask, estimated that the breach led to $22 million in questionable withdrawals.
An investigation is currently ongoing. Interestingly, the breach occurred shortly after the exchange suspended all trading activities in response to signs of illegal access. Onchain data revealed substantial amounts of Bitcoin, Ether, Litecoins, Bitcoin Cash, and other cryptocurrencies involved in the incident.
Hackers often use multiple accounts to launder stolen funds. Following the attack, the stolen Ether was exchanged for DAI stablecoin. Despite reports of empty account balances, Lykke quickly responded by stating that the platform was undergoing maintenance and reassuring users about the safety of their funds.
In an email to customers, Lykke CEO Richard Olsen confirmed that the company is taking necessary steps to investigate the security breach. This incident underscores the ongoing security challenges faced by cryptocurrency exchanges. Just recently, DMM Bitcoin reported a hack resulting in a loss of $320 million.
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