Indonesian Crypto Exchange Indodax Loses Over $22M In Hot Wallet Attack

Indonesian cryptocurrency exchange Indodax was hacked early Tuesday, 10 September 2024. This hack caused theft of over $22 million worth of various tokens. The attack targeted Indodax’s hot wallets, according to security researchers from Slowmist and CertiK .

The stolen funds include over $14 million in ether (ETH), $2.4 million in Tron’s TRX, $1.4 million in bitcoin (BTC), and $2.5 million in Polygon’s MATIC, along with smaller amounts of other tokens, a breakdown of stolen funds by Slowmist shows .

Despite the losses, Arkham data shows that Indodax’s wallets still hold over $400 million in various tokens. This suggests the theft was only a fraction of the platform’s total holdings.

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Indodax Confirms Hack of Wallet

In a post on X, Indodax confirmed the attack. “We would like to inform you that our security team has discovered a potential security issue on our platform,” the exchange wrote, adding that it is conducting an investigation.

The platform claimed that it is currently undergoing a “maintenance.” During the maintenance, Idodax’s web platform and application would be “temporarily” inaccessible.

“But don’t worry, we can assure you that your balance remains 100% safe both in crypto and rupiah,” Idodax said.

However, users on X and the exchange’s Telegram channel reported issues, including disappearing wallet balances. One user claimed their 956 million rupiah had disappeared from their account.

Asset saya ilang 956jt gimana ini indodax tanggung jawabnya

— BITCOIN (@CallMe_W77) September 11, 2024

Notably, amid the disruption, Indodax’s X account promoted a “giveaway” of Indonesian rupiah on Instagram, raising concerns that the account itself may have been compromised.

The specific details of how the attack was carried out have yet to be disclosed, as investigations continue.

Indodax, a centralized exchange founded in 2014, primarily serves the Indonesian market. In the past 24 hours, the platform had traded over $11 million worth of cryptocurrencies, according to CoinGecko data, with all tokens paired against the Indonesian rupiah (IDR).

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Binance-Backed Tokocrypto Gains License in Indonesia

The attack targeting Indodax comes shortly after Binance subsidiary Tokocrypto secured a full license from the country’s Commodity Futures Trading Regulatory Agency (Bappebti).

Since 2014, Indonesian exchanges have been categorized as “prospective crypto exchanges,” operating under provisional regulatory frameworks. Tokocrypto was registered in 2019 as a Prospective Physical Crypto Asset Trader (CPFAK).

The move comes after Bappebti’s 2019 mandate requiring all crypto exchanges to seek proper authorization to continue operating legally in the country.

Data from CoinGecko shows Tokocrypto held a commanding 43% share of Indonesia’s centralized exchange market in 2023, making it the largest crypto exchange by trading volume. Indodax follows closely with a 42% market share, while Upbit Indonesia holds 15%.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.