LCX loses $6.8 million in a hot wallet compromise

Crypto exchnage LCX loses $6.8 million as one of their hot wallet on the Ethereum blockchain was compromised. The compromise was identified by PeckShield INC, a security company that has time and again been the first to inform us about other hacks as well. The company tweeted out:

After the same happened, the crypto exchange suspended all of its deposits and withdrawals to prevent any more losses.

LCX confirms

After the hot wallet was compromised and Peckshield tweeted the same, the crypto exchange LCX also confirmed it. They have tweeted out that one of their hot wallets has been comprised, and to prevent any more losses, they have secured the other wallets and assets.

A total of 8 assets were lost in the hack. The lost tokens in the hack were USDC, LCX, ETH, SAND, QNT, LINK, ENJ, and MKR. These are in order of the value lost and add up to the entire amount. At this point, the company is more focused on adding security to other assets rather than recovering the stolen funds.

About LCX

LCX loses $6.8 million
Image Source: LinkedIn

LCX is a safe and compliant digital currency buying, selling, transferring, and storage platform. It is a licensed trading platform that provides access to a variety of digital currencies. The Fintech firm also specializes in asset tokenization, utility and security token offerings, as well as innovative trading tools. The Financial Market Authority granted LCX regulatory approval for eight blockchain-related registrations in 2020. LCX was established in 2018 and had offices in Vaduz (Liechtenstein), Crypto-Valley Zug (Switzerland), and New Delhi (India).

Hacks are becoming very common

It’s high time that developers and companies focus more on security and regulation than anything else. In the last few months, we have heard about so many hacks that it started to sound normal now. The $150 million BitMart hacks to the $200 million Venus hack is one of the few. I am not counting the $600 million Polygon one because the funds were returned, but a compromise is still a compromise. A report suggests that in 2021 a total of $10.2 billion was lost to hacks, scams, and such illegal activities.

What are your thoughts as LCX loses $6.8 million in a recent hot wallet compromise? And do you think they will be able to recover the funds? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.

Also Read: JPMorgan gives its crypto, NFT, DeFi predictions for 2022