Japanese Crypto Exchange Liquid Suspends Deposits and Withdrawals Following Security Breach

Japanese Crypto Exchange Liquid Suspends Deposits and Withdrawals Following An $80M Security Breach

Reward-earning platform Celsius Network used by Liquid to allow its users to earn yield on crypto assured that their assets and accounts are unaffected by the accident.

Japan-based regulated cryptocurrency exchange Liquid has suspended the deposit and withdrawals of crypto assets after its hot wallets were hacked. It has not yet been confirmed just how many assets have been stolen.

In a tweet on Thursday morning, the exchange said that its hot wallets that were compromised as such are moving the assets into the cold wallet.

“We are currently investigating and will provide regular updates. In the meantime, deposits and withdrawals will be suspended,” said the exchange at the time.

This is in contrast with the exchange’s blog post about three years back when it said that they “keep 100% of customer crypto assets in cold wallet storage,” calling it a “no-brainer,” citing the staggering amount of funds lost in crypto hacks and scams.

But the exchange ended up falling victim to a hack, after all.

In a separate tweet, Liquid shared four blockchain addresses, for BTC, ETH, TRX, and XRP, that are believed to be associated with the hacker. The addresses specified have received 107.4 BTC worth $4.79 million, Ether address received about $69 million worth of ETH and other ERC-20 tokens, and TRX and XRP addresses had assets worth over $10 million combined. In total, the hack is estimated to be worth about $80 million.

Some wondered if this hack had any impact on Celsius Network. A few months back, Liquid allowed its customers to earn a yield on their crypto through the reward-earning platform Celsius.

Celsius Network CEO Alex Mashinsky assured its customers that “No Celsius Network assets or accounts were affected in the Liquid Global incident,” adding the Liquid yield account on its platform is also safe and was not affected.

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Author: AnTy

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