Coinhako hacking attack forces exchange to suspend user withdrawals

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The Coinhako hacking episode has led the exchange to limit user withdrawals in a bid to protect the assets. The exact cause and mechanism behind the sophisticated attack are under research. The restrictions on user withdrawals will be lifted until further notice.

Coinhako is a Singapore-based cryptocurrency exchange backed by crypto celebrity Tim Draper. Users were informed officially today about the disabled account send function on their accounts. The increasing number of hacking attacks in the crypto realm is shaking investor confidence and also causing embarrassment to the DeFi sector.

Coinhako hacking attack still a mystery

The exchange initially stated that account withdrawal restrictions were due to routine network maintenance. However, they retracted their statement and said that the exchange had suffered a significant hacking attack leading to account restrictions. The step will help avoid any ‘unauthorized transactions’ that can further complicate matters.

The Coinhako hacking details are still elusive. No further explanation has been issued by the exchange so far that it can reveal the nature and intensity of the hack. Also, the amount of asset damage has not been shared with the public so far. The preventive restrictions, conveyed via the exchange’s official Telegram channel, were not received well by the community.

As per reports, around 20 Coinhako accounts are believed to have been hacked. The official spokesperson of Coinhako mentioned that the user’s private keys are safe, and wallets were not compromised in any way.

Coinhako hacking scandal can dent the exchange’s reputation

Coinhako launched cryptocurrency trading operations in 2014, primarily for Singapore traders. Its Singapore dollar pairs are highly popular among the traders. In 2019, ‘over-the-counter’ crypto trading solutions were introduced.

Yusho Liu, the chief executive officer of Coinhako, said that the account restrictions are a countermeasure to prevent further transaction losses. Furthermore, user passwords have been reset to avoid identity theft. Normal operations like trading, deposits, and fiat withdrawals are very much functional. Tim Draper has so far not responded to the Coinhako hacking attack.

Featured Image by Pixabay

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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