Withdrawals Paused as Lykke Exchange Admits to $22M Hack

Last Updated on June 11, 2024

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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.

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.

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.

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.

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