Hackers transferred the stolen amount to four different wallets, in different cryptocurrencies: Bitcoin, Ethereum/Energy Web Token, Tronix, and Ripple. “We are currently investigating and will provide regular updates. In the meantime, deposits and withdrawals will be suspended,” the company said. Remaining assets will be moved to the company’s cold wallet ( i.e. a wallet not connected to the internet), Liquid said.
Popular and Regulated Crypto Exchange
Liquid consistently ranks among the global top 20 cryptocurrency exchanges by daily trading volume. The company is also a regulated exchange, meaning its processes are governed by Japan’s Financial Services Agency. The regulator has yet to comment on the matter. Though Liquid did not provide an estimate on the amount of stolen coins, analysts such as Elliptic say that hackers obtained $97 million in crypto. According to Elliptic, the hackers converted $45 million into ether through decentralized exchanges, such as Uniswap and SushiSwap. These are blockchain-based platforms that provide exchange services without relying on financial intermediaries.
Growing Attacks on Blockchain Exchanges
The news of this hack comes at a time when leading crypto exchange Coinbase announced its plans to enter the Japanese market. This is not the first time Liquid has faced a cyber attack in recent history. In fact, in November last year, Liquid disclosed that a hacker managed to breach employee email accounts and pivot to its internal network. At first, Liquid said that the attack was thwarted before the attacker could steal any information. However, subsequent investigations revealed that the hacker stole personal information from Liquid’s database of user details. The stolen information included names, home addresses, emails, and encrypted passwords. Earlier this month, blockchain platform Poly Network was also the victim of one of the largest crypto hacks ever. The hacker subsequently returned part of the stolen haul and was even offered a job as Chief Security Advisor by Poly Network. The rise in popularity of cryptocurrencies such as Bitcoin and Ethereum has led to a growth in scams by malicious actors. For more information on the cryptocurrency scams to watch out for, check out our detailed article here.
