Indodax Hacked, $22 Million Stolen, Leading to Service Shutdown

Indodax, the leading cryptocurrency exchange in Indonesia, has been forced to go offline following a massive security breach that resulted in the theft of approximately $22 million in various cryptocurrencies. This incident has triggered an immediate and thorough investigation into how the hack occurred and the extent of the damage.

Details of Indodax’s $22 Million Crypto Hack

Following the loss of nearly $22 million across multiple cryptocurrencies, Indodax had to suspend its web and mobile applications to delve into the security breach. Multiple blockchain research firms, including PeckShield, SlowMist, and Cyvers, sounded the alarm on September 11th about a potential attack targeting Indodax’s hot wallets.

According to Cointelegraph, the hacker absconded with significant amounts of tokens, including Bitcoin, Tron, Ether, and Polygon. An analysis by SlowMist revealed that the hacker exploited a vulnerability in Indodax’s withdrawal system to gain access to the hot wallet and siphon off funds. On the other hand, Cyvers suggested that the compromise extended to the signature machine and other critical systems.

The stolen cryptocurrencies included over $1.42 million worth of Bitcoin, $2.4 million worth of Tron tokens, more than $14.6 million worth of ERC-20 tokens, $2.58 million worth of POL, and $0.9 million worth of ETH from the Optimism blockchain.

Hacker Converts Stolen Tokens to Ether

Cyvers’ assessment noted that the hacker began converting the stolen tokens into Ether (ETH) after detecting over 150 suspicious transactions across various blockchain networks. The hacker used crypto mixing services like Tornado Cash to launder the stolen funds after converting them to ETH.

Indodax quickly identified the breach and promptly alerted its users about the temporary suspension of services. A statement from Indodax read: “Currently, we are conducting a complete maintenance to ensure the entire system is operating properly. During this maintenance process, the INDODAX web platform and application are temporarily inaccessible.”

Despite the breach, Indodax reassured investors regarding the security of their remaining crypto holdings.

Lazarus Group Suspected in Indodax Hack

Yosi Hammer, head of AI at Cyvers, indicated a high likelihood that the infamous Lazarus Group—a hacking organization linked to North Korea—might be behind this attack. Hammer stated to BSCN: “The pattern and the characteristics of the (Indodax) attack highly resemble those of North Korea’s Lazarus Group.”

Indodax has reserves totaling $369 million, which could potentially be utilized to compensate investors for their losses, according to data from CoinMarketCap.

In conclusion, while Indodax grapples with this significant security breach, both users and authorities are closely monitoring developments as investigations continue.