Anonymous hacker without face typing computer laptop.

Key Takeaways:

Lykke exchange was hacked on June 4, halting withdrawals on June 10; over $22 million estimated lost.
The exchange assured users their funds are safe, with sufficient reserves to cover losses.
Blockchain security researcher SomaXBT accused Lykke of hiding the breach initially, claiming a $19.5 million loss.

Lykke cryptocurrency exchange was hacked on June 4, leading to a halt in withdrawals announced on June 10.

The exchange assured users that their funds are safe and will be recovered.

With solid capital reserves and a diverse portfolio, Lykke maintains strong financial stability. Clients’ funds are safe and will be recovered.

The internal investigation conducted identified the IP addresses of the attacker, who stole more than $22 million of crypto assets.
— Lykke✨Zero-fee crypto exchange✨ (@lykke) June 10, 2024

Both Lykke UK and Lykke Corp AG were impacted, with withdrawals paused as a preventive measure.

Lykke, established in 2015 in Switzerland, is known for being a “no fee crypto exchange.”

Blockchain security researcher SomaXBT reported the attack on June 9, accusing Lykke of hiding the breach, which allegedly resulted in a $19.5 million loss.

According to DLNews, the British cryptocurrency exchange Lykke has shut down trading, citing "unauthorized access" to its platform and suspected hacking. MetaMask developer Taylor Monahan said the exchange has suffered a suspicious outflow of $22 million. https://t.co/luoIJjgDXU
— Wu Blockchain (@WuBlockchain) June 10, 2024

A Discord message suggested the team initially claimed unscheduled maintenance.

Users reported issues on June 8, with rumors of a hack circulating.

On June 10, Lykke confirmed the attack and apologized, assuring that the exchange has sufficient reserves to cover losses and keep client funds safe.

Lykke exchange halts trades due to "unauthorized access" and possible hacking, with a $22M outflow. MetaMask’s Taylor Monahan confirms. #cybersecurity https://t.co/ovINZ8py7m
— Satoshi Club Alerts (@satoshi_alerts) June 10, 2024

They identified the attacker’s IP addresses for a criminal investigation and engaged a cybersecurity team to recover the stolen assets, estimating the loss at over $22 million.

This incident underscores ongoing security challenges for centralized exchanges, similar to a recent hack on Rain exchange, which lost $14.1 million but covered the loss from its reserves.