One day after a hacking incident lost $6.8 million for LCX AG, the price of LCX tokens rose 15%.
As we welcome 2022 we can expect more cryptocurrency hacks, including Tinyman’s first one of the year on January 5th. Peckshield reported four days later that the Liechtenstein-based LCX AG had been hacked, with Ethereum tokens worth $ 6.8M going missing.
As a result of the hot wallet compromise, LCX AG informed customers via Twitter and assured them that their wallets and other assets had been protected through security measures.
Deposits and withdrawals are currently suspended. Ethereum tokens such as ETH, USDC, EURe, LCX native tokens and others were moved to the hacker’s ETH wallet: 0x165402279f2c081c54b00f0e08812F3fd4560a05.
The hack took place around 5:00 a.m. on January 9th (i.e. 10:00 PM UTC on January 8th). According to Peckshield, the total loss is estimated at $ 6.8 million, including $3.4 million C, $2.2 million LCX, $504,000 ETH, $468,000 SAND, $114,000 QNK, $47,4,000 LINK, $10,8,000 ENJ, and $9.7,000 MKR.
Something about LCX AG
LCX operates a regulated cryptocurrency exchange, a decentralized exchange aggregator and a token sales platform. After the hack took place, the platform looks forward to help from the community:
“During this difficult time, we really appreciate the support of our customers, exchanges, security experts and the broader crypto community.”
Hacks become common
Hot wallet hacks are becoming more common. Late last year, Bitmart lost $196 million when two hot wallets were hacked on December 5, 2021. The exchange promises a refund, but affected customers keep getting impatient.
AscendEX disabled deposits after moving $77 million worth of ERC-20, BSC and Polygon tokens from its hot wallet on 11/12/2021.
The Japanese exchange Liquid Global confirmed a hack of its hot wallet in August 2021. All assets were moved to cold storage wallets and deposits and withdrawals were suspended .
Hot wallets have the advantage of being easy to use because they are always online, including web-based wallets, mobile wallets, and desktop wallets. Cold wallets are offline and often come in the form of USB sticks, also known as hardware wallets. Hardware wallets are immune to hacks.
After hitting a low of $0.123 since the time of the hack, the token has risen nearly 15% in the past 24 hours. LCX is issued by LCX AG in accordance with the laws and regulations in Liechtenstein. According to reputable law firms, LCX can be classified as a utility token in the USA, Singapore and under Liechtenstein law.