LCX Tokens Price Drops After Hackers Discover Security Vulnerability | Transfer $6.8 million From Exchange Hot Wallet

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An attack on the LCX Exchange has caused $6.8 million in Ethereum-based tokens to be lost by Liechtenstein-based LCX AG.

An exploit on a security vulnerability led to a hack of one of the platform AG’s hot wallets. Clients were informed of the news on Twitter, and security measures were taken to protect their other wallets and assets.

Deposits and withdrawals have been halted for the time being. ETH, USDC, EURe, the native LCX token, and other Ethereum tokens have been moved to the hacker ETH wallet.

The transfer took place on January 8, 2022, about 10 p.m. UTC. According to Peckshield, the losses total $6.8 million. The majority of the losses were $3.4 million in USDC, $2.2 million in LCX, $504 thousand in ETH, $468 thousand in SAND, $114 thousand in QNK, $47.3 thousand in LINK, $10.8 thousand in ENJ, and $9.7 thousand in MKR.

Hot wallet hacks are becoming all too common. Bitmart just lost $196 million when two hot wallets were hacked on December 5, 2021, resulting in the loss of ETH and BSC. Bitmart has vowed to restore the payments, but consumers who have been affected are growing impatient.

On December 11, 2021, AscendEX disabled deposits after $77 million in ERC-20, BSC, and Polygon tokens were moved out of its hot wallet.

Because they are always online, hot wallets have the benefit of being simple to use. They are available in three varieties: web-based wallets, mobile wallets, and desktop wallets. Cold wallets exist offline and are frequently in the form of a USB flash drive, sometimes known as a hardware wallet. Hardware wallets are impenetrable to hackers.

In the previous 24 hours, the LCX token has dropped 9.8 percent. It is described as “a long-term sustainable incentive mechanism to motivate various stakeholders to participate in the ecosystem.”

The LCX token is issued by LCX AG in compliance with Liechtenstein laws and regulations. Legal companies have determined that the LCX token can be classed as a utility token under US, Singapore, and Liechtenstein legislation.

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