Indodax Exchange Faces $15M Loss in Major Exploit, Says PeckShield

Coinspeaker
Indodax Exchange Faces $15M Loss in Major Exploit, Says PeckShield

Indodax, an Indonesian crypto exchange with a relatively large following, has reportedly suffered a major security breach, resulting in significant losses. According to blockchain security firm PeckShield, the incident cost Indodax no less than $15.7 million. While the resulting losses may have sent users of the platform and the crypto community at large, into shock, there are suspicions that the senseless attack involved large-scale siphoning of digital assets across multiple blockchain networks.

PeckShield was the first to reveal the incident. The firm shared the report, via their X (formerly Twitter) account, noting that their systems had detected outflows from Indodax’s wallets that looked suspicious and abnormal. PeckShield eventually raised the alarm when it noticed that a total of $15.7 million worth of cryptocurrency may have been drained from the exchange’s accounts. From the investigation conducted by the security firm, about 5,204 ETH ETH $2 330 24h volatility: -0.9% Market cap: $280.42 B Vol. 24h: $12.84 B , valued at several million dollars, was found to have been moved to an address on Ethereum. About 6.8 million POL was located on the Polygon network, while 380 ETH was also found on Optimism, another Ethereum-based layer-2 solution.

Another security firm, Cyvers Alerts, soon made the same discovery. Cyvers claimed that its systems also identified a series of suspicious movements of funds linked to Indodax’s wallets. Its statement reads:

“The suspicious address already holds $14.4 million and is actively swapping tokens for Ether.”

Indodax, meanwhile, has now officially confirmed the incident via a recent announcement on X. It said the web platform and application will be temporarily inaccessible but also seized the opportunity to assure users that their funds are secure. The official statement read in part:

“…Don’t worry, we can assure you that your balance remains 100% safe both in crypto and rupiah.”

According to the platform, its security team is reportedly working around the clock to rectify the issue, but the exchange has not yet provided a detailed explanation of how the breach occurred.

As of now, the Indodax situation has left users and industry observers anxious. The incident has once again raised alarms over the risks that come attached to cryptocurrencies. It has also further highlighted the need for exchanges to put up tighter security protocols.

Notably, the Indodax exploit is one in a series of recent attacks targeting digital assets. This has added to concerns over the growing risk of cybercrime in the decentralized finance (DeFi) sector. As the investigation continues, users wait impatiently to hear how Indodax plans to address this serious breach and hear word on when the platform will return to normalcy.

Indodax Exchange Faces $15M Loss in Major Exploit, Says PeckShield