Hong Kong-based cryptocurrency exchange CoinEx has recovered from a USD 70 million hack and is set to resume deposits and withdrawals. According to cointelegraph.com, the exchange has made it a priority to build and deploy a new wallet system to facilitate activities for the 211 blockchains and 737 tokens that it served before the hacking incident.

Moreover, CoinEx has revealed that it will resume deposit and withdrawal services for Bitcoin, Ether, USD Coin, and Tether on 21 September 2023. As part of this endeavour, CoinEx will update deposit addresses for the listed tokens and will generate new deposit addresses for its users. Customers were advised not to deposit into old addresses on the platform, as this would result in permanently losing the assets.

The exchange also warned of a potentially large number of pending withdrawals upon resuming operations. Security and hacking concerns In order to protect users against any security threats, the company has introduced a 100% asset reserve policy. Following the hack, CoinEx reassured users that their assets were not affected and that any potential losses would be covered by the User Asset Security Foundation.

Since then, the crypto exchange clarified that compromised private keys for some of its hot wallet addresses allowed hackers to withdraw around USD 70 million worth of cryptocurrencies. The hot wallets in question were used as temporary storage for user deposits, withdrawals, and temporary storage. Specifically, the hackers managed to withdraw 4,953 ETH worth USD 8 million, as well as 231 BTC (USD 5.7 million), 137 million Tron tokens (USD 11 million), and 135,600 Solana (USD 2.6 million).

More information about hot wallets According to investopedia.com, a hot wallet is a cryptocurrency wallet that is always connected to the internet and a cryptocurrency network. Hot wallets are used to send and receive cryptocurrency, and they allow users to view how many tokens they have available for use at any given time. Hot wallets are linked with public and private keys that help facilitate transactions and act as security measures.

However, because hot wallets are connected to the internet, they tend to be somewhat more vulnerable to hacks and theft when compared to cold storage methods. There are a various hot wallets available, and many of them are free to download and use. Some of them are specifically designed to be used in partnership with particular mobile web applications.

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