Indodax Suspected Hack: $22M in Crypto Stolen

• The Indodax suspected hack resulted in the theft of $22M in various crypto assets
• Multiple hot wallets were compromised, affecting major cryptocurrencies like Bitcoin and Ethereum
• Indodax claims users' balances remain safe while investigations are ongoing

Days after the FBI warned cryptocurrency investors of a surge in crypto-related attacks, it has emerged that hackers have targeted and attacked an Indonesian exchange based in Bali called Indodax.

According to blockchain security firm SlowMist, hackers made off with close to $22 million in different digital assets, including Bitcoin, Ethereum, and a number of other cryptocurrencies.

Hackers Target Indodax and Compromise Hot Wallets

Just some days after the FBI warned cryptocurrency investors of the increase in crypto-related attacks, an Indonesian exchange was reportedly hacked. Some cybercriminals hacked the Bali-based Indodax cryptocurrency exchange on Wednesday.

Blockchain security firm SlowMist pegs the stolen sum at about US$22 million worth of digital assets like Bitcoin, Tron, Ether, Polygon, Tether, Shiba Inu, and Uniswap. According to the company, the amount stolen reached $21.95 million or about 184.3 billion rupiahs.

CertiK, a research company, stated this citing an analysis published by SlowMist on X, formerly known as Twitter. It said that the hackers compromised multiple internet-connected hot wallets to facilitate the theft of these assets.

Indodax announced this on X after it went offline on Wednesday. "Our security team found a potential security incident on our platform," said the @Indodax handle. "But don't worry, we can assure you that your balance remains 100% safe, both in cryptocurrency and rupiah," the exchange said.

Indodax Conducts Audit as Services Remain Suspended

The platform is auditing its internal systems. During this ongoing maintenance, all services on the exchange remain suspended. "We are doing this to ensure that your transactions are secure and convenient. We will give further updates upon completion of the investigations," the company said.

According to the research platform Arkham, Indodax's treasury contains various crypto tokens worth $408 million, about Rs. 3,426 crore. Therefore, it is a relatively small portion of its total assets that has been stolen. The centralized exchange was founded in 2014 and operates mainly within the country. Last week, the FBI warned cryptocurrency investors about the growing threat from "highly sophisticated" North Korean hackers.

In July this year, the Indian cryptocurrency exchange WazirX was hacked and lost $230 million, or about Rs. 1,900 crore. WazirX has not declared who the perpetrator was behind the hacking incident. However, according to Nischal Shetty, its co-founder, the pattern of the hack is similar in nature to that of the North Korea-based notorious hacking group Lazarus.

Conclusion

While Indodax tries to reassure users of the safety of their funds, it has kept its platform offline to perform an audit of its internal system. The breach once again brings to the fore the increasing vulnerability of cryptocurrency exchanges in the face of sophisticated cyberattacks.