Topic: $28M stolen from CoinEx - are your funds safe? - page 2. (Read 410 times)

No one is gonna get back anything as I have hardly heard about this exchange and that too for wrong reasons like bot manipulation of their trades, users should accept the reality and move on instead of hoping that Coinex will refund their funds as this exchange itself is unreliable. It's sad to see how users are losing their fund and it's high time we should start learning more metamask or hardware wallet if they could afford it.

This also pushes us towards more reliable exchange who can afford to reimburse incase of such attacks.

Definitely 100% safe because I hold my coins in my non custodial wallet, so even any exchange, any banks, any platform including the official website of my wallet got hacked, there's no way for the hacker can compromise my wallet.

Because they're stupid, just like how people leave their coins in Binance after they read Binance has SAFU.

I'm not affected by this because I'd never store my funds in this exchanger, and I'd never store in others as well. But this case will have a huge impact on those traders who use usually entrusted exchanges and keep their funds for a long time, and they will realize the risk of doing this.

This would be an open-eye for exchangers as well to keep their security more secure and also to give assurance for their clients to give back their money.
I hope they'll catch the person/group of people who did this but it was uncertain to get back all the money stolen from them.

Here some official update - https://announcement.coinex.com/hc/en-us/articles/19187420867348-Latest-Progress-of-the-Hacking-Attack-on-Sep-12-2023-Updated-on-Sep-15-

Latest Progress
Currently, CoinEx has taken the following measures:
1. Suspension of deposit and withdrawal services of all crypto assets and emergency shutdown of the hot wallet server.
2. Transfer of remaining assets from the compromised hot wallet to safe addresses.
3. Rebuilding and redeploying the wallet system.
4. Investigations into the attack led by CoinEx wallet team and security team, based on the information and clues collected.
5. Contacting exchanges to freeze the assets of malicious attackers.


CoinEx solemnly promises that users’ assets have NOT been, and will NOT be affected in this attack, and the CoinEx User Asset Security Foundation will bear the financial losses from this incident.

 

Wallet Service Recovery Plan
Currently, CoinEx is actively working to rebuild the wallet system, including 211 chains and 737 coins. The process will take some time, and we will incrementally resume deposit and withdrawal services after ensuring asset safety. For now, before the recovery is complete, we strongly advise you NOT to deposit to old addresses to avoid potential asset losses. We sincerely apologize for the inconvenience.

*We will provide timely updates on the deposit and withdrawal recovery of corresponding coins here*

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for now CoinEx user only can do trade but cannot move their token outside  tho they say the team have all the money from their coldwallet lets wait and see

Top Tier exchange like Binance though said that they are SAFu, but not sure about other exchanges as well. So that's where all the danger is, if exchanges getting hack like in this case, how can they pay their customers?


We've seen in the past the some shady exchanges really pull this exit scams. And recently there is this case,

https://www.coindesk.com/policy/2023/09/08/11196-years-in-prison-for-faruk-ozer-ceo-of-collapsed-turkish-crypto-exchange-thodex/

The danger comes with it if there's no assurance that exchange could able to pay their user since if they remain those funds locked for long time meaning they don't have enough funds and maybe slowly disperse just like the same scam exchange done.

Legit exchange return their operation immediately once they settle all things and make sure their platform is safe but if issue to their user still happening then I guess this hacking is used for another exit strategy by scam platform owners.

That means something. I agree with you on some points. When hacking occurs, the next issue is between users vs exchanges and this is where the danger comes in. Of course, user funds remain "safe", it's just that they are owed/frozen until the exchange is able to pay. High hacking rates sometimes make the exchange fail to fulfill its obligations to customer money on time.

Yes true, but people do trade as well, so when we are talking about exchanges being a bit of a trouble but also talk about trading, that means that you have to leave at least some money in there so that you could keep trading.

You can withdraw it every single night if you want to before sleep, but while trading you have to deposit that money back in and trade. They are not going to allow you to trade without having your money in there, and that means it is going to be a bit of a trouble. I hope that people could do a lot better on the long run, it should be great and could help you out a lot, we should definitely consider exchanges to be helpful in these cases, such as coinex allowing people to withdraw easily.

These exchanges have strong profit reservoirs, so why were they vulnerable? A safety net is nice, but shouldn't the priority be security? Imagine leaving the key to a secure vault under the doormat. Trust is essential. People may not trade or store assets on a compromised exchange. Even after getting their money back, it's a mental obstacle.  We should discuss how to secure everyone's funds while discussing the strength of these large objects. While we're about it, why not teach them how to utilize crypto safely?

I know nothing about the exchange, but as we can see, that’s one of the reasons why we shouldn’t leave our coin on the exchange. Anything can happen to any exchange at any particular time, so leaving our coin there is really risky and dangerous. The exchange might not be popular, but even popular exchanges with good reputations and security are being hacked, so to be on the safer side, just get a non-custodial wallet and store your coin there. If the wallet is properly secured, then nothing will be wrong with your coin, and you will have total control of your coin, not that anyone will be controlling your coin.

It is obviously not recommended to keep your cryptocurrencies in an exchange if you are not using them for trading because it's a trading platform and not a wallet. However, those who get hugely affected by such attacks are people who are day trading and they usually keep pretty high amounts of assets in their trading accounts because they use that money for their daily trading activities and it is hectic to just withdraw and deposit that money every day and pay so much money in fees.

However, if the exchange has announced that they will reimburse the money of traders that are lost in the breach then it's a good thing because it is not the mistake of traders but the exchange if the hackers could breach their security and reach their hot wallets. Whatever it is, it's really sad to hear about such things.

Probably some of them are day trader who actively moves their funds though I agree that we should not keep our funds on any exchanges especially if you are playing long. Hopefully the site will be more responsible to this and compensate the losses, it’s not that big compare to other hacking incidents and I’d hope that this site have the same strategy with Binance. Didn’t know much about this site so let’s assume that there’s no inside job here.

for a relatively big exchange, they can afford to give the funds to its users. but if it is a small exchange, doubt if they can give back. usually, they will shut down their exchange without a warning. for users, they always need to be reminded of this situation. so always transfer your funds to your own wallet after you use the services of the exchange. you will subject your funds to this fraudulent activity if you keep it on them.

Most of these exchanges make so much profit that they are willing to give people their money back even though they were hacked, how? From the profits. When you have a company as big as this, losing this much money means that you just use your profits to pay. In fact, the worst thing is not the money stolen, that is fine, it's the fact that some people will leave with fear and that's even worse which would be the issue.

I believe that we are going to see a lot less numbers on that exchange because of this, and hopefully we will get to a point where things will be a lot easier in the end for people, should be fine in the end. I can't guarantee it, but looks like it could be something that is wildly possible in the end.

I never use an exchange to store my funds. I prefer to use my personal wallet. It's much safer. I only use exchanges to trade or exchange cryptocurrencies. It's a shame for those who keep their money there. I just hope the company really compensates users for their losses.

It's not necessary to keep your fund in a hardware wallet even have a software wallet which is also safe. A hardware wallet is enough expensive, it's better to use the money to buy more coins to invest. I used metamask for long time, and never have problem with my funds. So when I buy ETH on exchange, I will send it immediately to metamask wallet and hold it. Besides I used for saving, a wallet where I have a key is safe from hacker online where always aiming the exchange.

I rarely hear about this exchange, so I never even made an exchange in it. Additionally, I feel that CoinEx is not a well-known exchange, so I think hackers will try to attack it. Additionally, the allocation of stolen money is so large, I'm not sure that CoinEx will replace it soon, and the people who used it will likely try to withdraw their money from there. Well, I also hope that people who use this exchange can save their assets.

That's why I don't trust any random exchanges, especially exchanges that are not reputable ones.
Also, some exchange accidents can be caused by some insiders or they are the ones who steal customers' money, we don't know.

It's just sad because Hong Kong started to gain some exposure to cryptocurrency, but this happened.

At this point whoever has funds can't be felt bad for.  Exchanges are NOT wallets, and shouldn't be used as such.  Send crypto on, trade and then move of exchange.  What is so hard about this and how many "breaches" or "hacks" have to happen before people wake up lol.

  This makes me smile 😊 I am USA based so they gave me the boot 🥾 in 2021.

Once again I got lucky 🍀 with an exchange.