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It has come to light that hackers had chosen and attacked Indodax, an Indonesian exchange with its headquarters located in Bali, just days after the FBI alerted cryptocurrency investors about an increase in attacks related to cryptocurrencies.
Security researchers reported on Twitter that early on Tuesday, the Indonesia-based cryptocurrency exchange Indodax suffered a hack for more than $22 million worth of different tokens in what appeared to be a hack on their hot wallets.
Reports about $22M Hack
According to private research by SlowMist, the hacker was able to withdraw money from the exchange's hot wallet due to a flaw in Indodax's withdrawal method. Cyvers, however, thought that other systems, like the signature machine, were under attack.
The hacker gained access to the Optimism blockchain and took more than $1.42 million in Bitcoin, $2.4 million in Tron's TRX, over $14.6 million in other ERC-20 tokens, $2.58 million in POL, and $900,000 in ETH.
Cyvers reported that the hacker had begun converting the tokens to ether after spotting more than 150 unusual transactions across several networks. Hackers usually use crypto blending services like Tornado Cash to secretly flow off their wealth after changing their stolen assets to ETH.
North Korean Hackers
Yosi Hammer, head of AI at Cyvers, believes the Lazarus Group, famous North Korean cryptocurrency hackers, may have been involved. ZachXBT, a cryptocurrency investigator, came to the same judgement.
Yosi stated to BSCN:
“The attack's pattern and features closely resemble North Korea's Lazarus Group.”
North Korean hackers are targeting the crypto community more often. The Lazarus Group, based in North Korea, was also involved in the biggest attack in July, which cost cryptocurrency exchange WazirX $235 million.
After Effects of this Hack
Many of Indodax's users are confused about the reason behind its immediate offline status. They were worried about the security of their investments because they could not trade, check their accounts, or withdraw money while the platform was unavailable.
The main concern for many people is whether Indodax will be able to get the money back and get its platform back up and running. Users have been informed by the exchange that it is making every effort to address the problems and that it has hired cybersecurity specialists to help secure its systems.
Future of Indodax
Indodax's future is questionable in the wake of the reported $22 million hack. To win back the trust of its users and the larger cryptocurrency industry, the exchange needs to handle the fallout carefully. To recover, Indodax will need to properly convey the incident's specifics, pay the affected users, and implement improved safety measures.
The cryptocurrency community will be attentive to the investigation's progress to see how Indodax handles this situation and what measures it takes to avoid future occurrences of
