Crypto Exchange AscendEX Confirms Hack, Assures Full Compensation

AscendEX, formerly known as BitMax, has become the latest cryptocurrency exchange to fall victim to a hack, losing an estimated $77.7 million worth of cryptocurrencies.

The Singapore-based exchange officially announced the hack on Sunday through its official Twitter handle. It confirmed unauthorized withdrawals from one of its four hot wallets but assured the safety of all the cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term stored in cold wallets.

22:00 UTC 12/11, We have detected a number of ERC-20, BSC, and Polygon tokens transferred from our hot wallet. Cold Wallet is NOT affected. Investigation underway. If any user’s funds are affected by the incident, they will be covered completely by AscendEX.

— AscendEX (@AscendEX_Global) December 12, 2021

The perpetrators siphoned multiple cryptocurrencies from the exchange across three blockchains: Ethereum, Binance Smart Chain and Polygon. Though the exchange did not officially put up a figure of the loss, crypto security firm PeckShield estimated the total loss to be around $77.7 million.

Out of the total, $60 million worth of cryptocurrencies were taken from Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term, $9.2 million from Binance Smart Chain and the rest from Polygon. The largest unauthorized withdrawal of more than $10.8 million was made in lesser-known altcoin TARA, followed by two stablecoins, USDT and USDC. Additionally, sums were siphoned in popular tokens like SHIB, AAVE and COMP.

Estimated loss @AscendEX_Global: $77.7M in total ($60M on @ethereum $9.2M @BinanceChain $8.5M @0xPolygon). Here is the list of the transferred-out assets and their amounts on @ethereum pic.twitter.com/VC4DKOwu4f.

— PeckShield Inc. (@peckshield) December 12, 2021

Assures Compensation

Meanwhile, the exchange assured that it will compensate all victims fully for their losses in the security breach. Moreover, it highlighted that the value of cryptocurrencies stolen in the attack consists of only a small percentage of total exchange assets.

The action plan of AscendEX includes collaboration with blockchain forensic firms and law enforcement to investigate the attack, migrate the impacted projects and gradually re-start the deposit and withdrawal process.

Furthermore, the crypto exchange shared the wallet addresses to which the stolen funds were transferred.

Meanwhile, crypto exchanges remain vulnerable to attacks despite technological advancements in the industry. Earlier this month, the security of Bitmart, another crypto exchange, was breached, resulting in the theft of $196 million in cryptocurrencies.