Huge Hot Wallet Compromise Over Ethereum Blockchain LCX Loses $6.8M Worth Crypto

The cryptocurrency market always remains a hot topic on the internet and at every moment, we hear some unexpected news every day. As the market is showing deep in the last few days and as of January 9, the global cryptocurrency market cap is $1.96 trillion which is down 1.53% compared to last day and the total crypto market size in the last 24 hours is $91.82 billion which is a decrease of 19.61%. Besides, the total volume in DeFi is currently $15.89 billion with 17.31% of the total crypto market in just 24 hours’ volume.

Due to the massive drop in the market, the Liechtenstein-based crypto exchange, LCX has approved the settlement of one of its hot wallets after temporarily suspending all deposits and withdrawals on the platforms. According to the sources, the hack was first observed by PeckShield, a blockchain security firm that relies on the suspicious transfer of ERC-20 tokens from LXC to an unknown Ethereum (ETH) wallet. Since the news is in the spotlight and has become the hottest news on the internet, many traders are wary of taking their step forward.

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According to the latest sources, the settlement of the hot wallet was soon confirmed by the exchange as it announced the loss of several tokens including USD Coin (USDC), ETH and other tokens including its own internal LCX token.

The official LCX Twitter page tweeted, “We are sorry to announce that one of our hot wallets has been hacked. We have taken security measures to protect wallets and other assets.” Ahead of this tweet, another tweet read, “Ethereum blockchain-based assets such as ETH, USDC, EURe, LCX and other assets moved to Hecket ETH Wallet.”

According to an investigation by PeckShield, LCX has lost a cumulative amount of $6.8 million after an unknown hacker successfully transferred eight types of tokens through which Sandbox (SAND), Quant (QNT), Chainlink (LINK), Enjin Coin (ENJ) and Maker (MKR).

PeckShield officially announced this information in a tweet and published the names of the tokens. Below is the list provided by PeckShield.

Well, at the time of writing this information LCX has not shared any plan to help return the stolen funds. The company confirmed that security measures have been taken to protect other wallets from unexpected future incidents. Alongside this, another report came out, ImmuneFi, a security platform that found that crypto companies incurred losses of over $1.02 billion in 2021 due to hacks, fraud and other toxic activities.