Indodax Crypto Exchange Offline After $22M Hack, Bappebti Urges Calm
Massive Hack Hits Indonesia's Top Crypto Exchange
Indodax, Indonesia's crypto powerhouse serving 6.7 million users, fell victim to a sophisticated hack as per reports from blockchain investigation firms on September 11, 2024, resulting in a staggering $22 million loss across multiple cryptocurrencies. Blockchain security firms PeckShield, Cyvers, and SlowMist sounded the alarm, identifying over 150 suspicious transactions as hackers drained hot wallets and swiftly converted stolen funds to Ethereum.
The brazen attack dealt a significant blow to Indodax's digital coffers, with losses spanning various cryptocurrencies: $14.6 million in ERC-20 tokens, $2.58 million in Polygon, $2.4 million in Tron, $1.42 million in Bitcoin, and $900,000 in Ethereum from the Optimism blockchain.
As news of the breach spread, Indodax swiftly disabled its web and mobile services to prevent further unauthorized access and secure its systems.
Fingers point to North Korea's infamous Lazarus Group as the likely culprit behind this audacious heist. Known for their involvement in high-profile cryptocurrency crimes, including the $230 million WazirX hack, the group's signature tactics were evident in this latest attack. Cyvers head of AI Yosi Hammer noted striking similarities between the Indodax breach and previous Lazarus Group operations.
Indodax co-founder William Sutanto moved quickly to reassure the exchange's massive user base, promising to cover customer losses and launch a thorough investigation into the breach. The Indonesian Commodity Futures Trading Regulatory Agency (Bappebti) has taken an active role in the aftermath, urging investors to remain calm and summoning Indodax representatives for a detailed explanation of the incident.
Despite the ongoing maintenance and investigation, Indodax made a surprising move by announcing a 3 million Rupiah (approximately $195) giveaway – an apparent attempt to mollify frustrated customers during the service outage. This gesture comes as the exchange faces the daunting task of rebuilding trust and restoring operations in the wake of the hack.
As the crypto community watches closely, questions linger about the long-term impact of this breach on Indodax and the broader Indonesian cryptocurrency market. With a reported reserve balance of $369 million, the exchange may have the financial cushion to weather this storm. However, the incident serves as a stark reminder of the persistent threats facing even the largest players in the volatile world of digital assets.
This article has been refined and enhanced by ChatGPT.
