At 21:20 UTC+8 on September 12th, CoinEx’s Risk Control System sensed something was amiss—a major red flag indicating anomalous attacks on hot wallets where our funds reside. Spoiler alert: It wasn’t a cat video gone wrong, but rather a security incident that has pushed us into high gear.

Initial Findings: Peeling Back the Layers

So, what happened? The initial investigation suggests that compromised private keys in hot wallets were the culprits behind the attack. However, we’re still diving into the depths of this digital mess, trying to pinpoint the exact causes—because who doesn’t love a good mystery?

Emergency Measures: Swift Action in Turbulent Times

In the last 48 hours, our team has been busier than a squirrel in a nut factory, implementing emergency measures that include:

• Suspension of Deposits and Withdrawals: We hit the emergency stop button on all wallet activities.
• Cold Storage Transfers: Remaining assets have been safely tucked away in secure cold storage, where no hot winds can reach them.
• New Wallet Architecture: We’re not just patching the old system; we’re constructing a brand-new, fortress-like wallet system.
• Investigation Launch: Our wallet and security teams are in detective mode, piecing together what went wrong.
• Freezing Assets: We’ve reached out to other exchanges to freeze any assets that might be linked to this breach.

Message from the Top: Leadership’s Commitment

Our Founder and CEO, Haipo Yang, has expressed genuine remorse to those affected through social channels. He’s reassured users that all diligent efforts are being made to resolve the situation promptly and that user funds are not at risk. He’s basically our captain steering the ship through a storm—no life vests needed.

Addressing Your Concerns: Transparency is Key

We hear you loud and clear, folks! Your worries about when withdrawals will resume and how we’ll compensate for lost assets are on our radar. Here’s how we’re tackling these concerns:

• Service Resumption: Expect wallet upgrades to wrap up next week, followed by phased withdrawal reactivations. We will be implementing stringent security checks—no shortcuts here.
• Cost of the Incident: Currently, we estimate around $70 million USD in losses (don’t grab the tissues just yet). But rest assured, this is a fraction of our total assets.
• Compensation Promise: We promise to compensate affected users fully because that’s just the right thing to do. We’re cooking up a compensation plan tailored for each coin—stay tuned.

The Road Ahead: Building a Fortress

What’s next? We’re doubling down on security and efficiency. Plans are in motion to establish a CoinEx Safe Fund to bolster our response to future incidents. We’re also calling for the broader crypto community to join hands in enhancing security measures and ensuring a stable ecosystem. After all, safety is a team sport!

In closing, a heartfelt thank you to our community for your support and understanding during this turbulence. Stay tuned to our official channels for updates—we’ll keep you in the loop as we resolve this challenging chapter together.