Indodax Suffers $22M Crypto Hack

After losing almost $22 million in several cryptocurrencies, the Indonesian crypto exchange Indodax stopped its web and mobile apps to investigate the hack.

Indonesia's largest crypto exchange, Indodax, has gone offline after a $22 million hack, prompting an urgent investigation into the breach that hit hot wallets on multiple blockchain networks.

Indodax Hit by $22M Crypto Hack

Indonesian crypto exchange Indodax has halted its web and mobile applications to look into the hack after losing nearly $22 million in various cryptocurrencies.

Multiple blockchain research firms, including PeckShield, SlowMist, and Cyvers, had raised the alarm on September 11 about a possible attack on Indodax’s hot wallets. The attacker managed to drain substantial amounts of tokens including Bitcoin, Tron, Ether, and Polygon, Cointelegraph reported.

According to SlowMist’s analysis, the attacker was able to exploit a vulnerability in Indodax’s withdrawal system, gaining access to the exchange's hot wallet and moving the funds. However, Cyvers suggested that the signature machine and other systems were compromised.

The hacker drained the Optimism blockchain of over $1.42 million in Bitcoin, Tron tokens worth $2.4 million, ERC-20 tokens valued at over $14.6 million, POL tokens worth $2.58 million, and ETH tokens valued at $0.9 million.

Hacker Converted Stolen Tokens to Ether

Cyvers’ analysis noted that the attacker proceeded to convert the tokens to Ether after detecting over 150 suspicious transactions on multiple networks. Hackers typically use crypto mixing services like Tornado Cash to launder the funds after converting them to ETH.

Shortly after the hack warnings, Indodax acknowledged the attack and notified users about the temporary suspension of services.

“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,” the company stated.

However, the crypto exchange assured investors that their crypto holdings were safe.

Lazarus Group Suspected in Indodax Hack

Cyvers’ Head of AI, Yosi Hammer, has suspicions that the infamous Lazarus Group, a collective linked to North Korea, might be involved.

“The pattern and the characteristics of the (Indodax) attack highly resemble those of North Korea’s Lazarus Group,” he told BSCN.

According to data from CoinMarketCap, Indodax has $369 million in reserves, which could be used to compensate investors for their losses.