- CoinEX confirmed a breach involving ‘unauthorized transactions’ on Tuesday
- Observers estimate more than $27 million worth of crypto was drained
- READ MORE: MGM cyberattack investigated by FBI
The cryptocurrency exchange CoinEX has been hit by hackers who drained an estimated $27 million worth of digital tokens from the exchange.
CoinEX confirmed the breach in a statement on Tuesday, saying its preliminary assessments ‘indicate unauthorized transactions’ in ether and several related cryptocurrencies.
The company did not immediately respond to an inquiry from DailyMail.com about the scope of the losses, but blockchain researchers pegged the stolen funds at more than $27 million.
CoinEX said it would guarantee the funds of all customers, and had temporarily shut down deposit and withdrawal services pending a security review.
‘Affected parties will receive 100% compensation for any loss due to this breach,’ the company said. ‘We deeply regret any distress this may have caused and assure you of our unwavering dedication to safeguarding your interests.’
In a follow-up statement, CoinEx said it had ‘identified and isolated the suspicious wallet addresses linked to the hack.’
The Hong Kong-based platform was founded in 2017 by Haipo Yang, who remains the CEO, and is also known as Vino Global Ltd.
In June, CoinEx agreed to pay $1.8 million and be banned from operating in New York to settle state Attorney General Letitia James’ lawsuit accusing the exchange of operating illegally by failing to register with the state.
A proposed settlement was filed on June 15 in a New York state court in Manhattan, and requires a judge’s approval.
It calls for CoinEx to be banned from offering, selling or buying securities and commodities in New York, or making its platform available in the state.
The payment includes $1.17 million of refunds to 4,691 investors, which may be reduced if they withdraw crypto assets during a specified 90-day period, plus a $626,000 fine.
CoinEx did not admit wrongdoing in agreeing to settle.
‘Unregistered crypto platforms pose a risk to investors, consumers, and the broader economy,’ James said in a statement. ‘Today’s agreement should serve as a warning to crypto companies that there are hefty consequences for ignoring New York’s laws.’
James sued CoinEx in February, saying its failure to register before buying and selling tokens such as AMP, LBRY, LUNA and Rally violated the Martin Act, a powerful state law used to fight financial fraud.
The case was part of her enforcement efforts to rein in what she has called ‘shadowy’ crypto companies.
Gary Gensler, who chairs the U.S. Securities and Exchange Commission, has also targeted the crypto industry.
This month the SEC sued Binance, the largest crypto platform, and Coinbase, the largest U.S. crypto platform, saying they operated as exchanges without registering with the agency.
