Crypto Exchange AscendEX Loses ~$78 Million In Latest Hack

The attack on the exchange’s hot wallet resulted in a loss of $77.8 million worth of crypto assets, according to security researchers, PeckShield. 

Second Crypto Exchange Hacked In December

Formerly known as BitMax, the crypto exchange has announced that investigations into the hack are underway. The company also revealed that it is working with blockchain forensic firms and law enforcement to get to the bottom of the hack. Additionally, the AscendEX team also informed the public that the company itself would compensate any user who has lost funds in the hack.

AscendEX disclosed details of the hack via a tweet from its official Twitter handle, 

“We have detected a number of ERC-20, BSC, and Polygon tokens transferred from our hot wallet. Cold Wallet is NOT affected. Investigation underway. If any user’s funds are affected by the incident, they will be covered completely by AscendEX.”

The director of sales and business development at AscendEX, Jay Kubert, clarified that all deposits and withdrawals have been halted temporarily to investigate the matter thoroughly and will be resumed shortly. 

The crypto firm also reported that the attack has affected the progress of certain small projects that were being undertaken by AscendEX. More specifically, since the attack targeted tokens on hot wallets, new tokens have to be reissued to holders. This additional task will affect the overall liquidity and slow down new projects that were on the exchange’s roster. 

PeckShield Reports $78 Million Loss

However, the exchange did not disclose the specific tokens or the total amount that was stolen. The information was made public later by the security and auditing company PeckShield, who revealed that the stolen assets included stablecoins like Tether (USDT) and USD Coin (USDC), well-known crypto tokens like Shiba Inu (SHIB), Aave (AAVE), and Compound (COMP), and lesser-known ones like Taraxa (TARA). 

PeckShield also reported that the assets were stolen from three blockchains, amounting to $60 million on Ethereum, $9.2 million on Binance Smart Chain, and $8.5 million on Polygon. 

First BitMart, Now AscendEX

Several crypto exchanges are being targeted by hackers who are siphoning off millions of dollars worth of crypto funds. Last week, crypto exchange BitMart fell victim to a similar hack, where $200 million worth of assets were taken out of Ethereum and Binance Smart Chain blockchains. These two high-profile hacks, both happening so close to one another, indicate a pattern and have greatly concerned the crypto industry. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.