Cyber attacks throughout the crypto market are getting much worse as the market gets more popular. In 2020 cyber attacks only cost companies a little over $100 million. But only six months into 2021, the total value lost to cyber criminals rose to over $350 million. And that value is not even counting the biggest heist to ever occur in crypto history.
Unfortunately, despite its best efforts, Liquid Cryptocurrency Exchange fell victim to a cyber attack as well. For now, the Japan-based crypto exchange is suspending all withdrawals and deposits for its investors since the attack.
While an exchange itself being hacked is not very surprising, the fact that it was Liquid Exchange is quite serious. It is one of the biggest fiat-crypto exchanges in the world, thanks to its daily traded spot volume. They offer their services throughout 100 different countries with over 800,000 customers using their service. Furthermore, they also reported that they reached a daily trade volume of over $1.1 billion this year alone.
Once the exchange got wind that their warm wallets were compromised, they had to move fast. They quickly moved their assets, the ones that were not already stolen, into a cold wallet. A cold wallet is the same as a warm wallet being that the cold one does not connect to the internet. Therefore, in the event of a hack, they can be quite useful in protecting a company’s assets.
But despite their best efforts, the company did lose a large sum of money. To be exact, they lost $90 million worth of crypto. And even though the tea is holding out hope that it was a White Hat hack, they might not be so lucky.
Following the hack, Liquid released a statement. They said that they are investigating the incident and will keep people updated as to what happens. However, due to the nature of the attack, they will also be suspending withdrawals and deposits.
Their first update was not an optimistic one, as they informed their investors that assets worth a little over $90 million have been stolen. While they have yet to identify the party responsibly, they are taking measures to ensure that their users do not face the brunt of this attack.
And while this is certainly their most recent breach, it is not their first. An anonymous third party took hold of Liquid exchange’s account. They did so by transferring control of Liquid’s account to their own, due to a fault on their domain’s hosting provider. A subsequent investigation revealed that the hackers made away with sensitive information including keys, emails, encrypted passwords, addresses, and names.