FAQ About Security Incident

1. When did the hacker attack happen?

At 21:20 UTC+8 September 12th, 2023, our Risk Control System detected anomalous attack on several hot wallets owned by CoinEx to store exchange assets.

2. How did that incident occur?

Following the security incident, CoinEx promptly formed a special team to conduct a thorough investigation. The initial findings indicated that the cause stemmed from compromised private keys for hot wallets temporarily storing the exchange's assets to facilitate transactions. The specific causes led to this breach are still under examination. Please refer to our official channels for the latest information.

3. What's the timeline of measures taken by CoinEx in response to the hacking incident?

In the last 48 hours, CoinEx has adopted the following security measures:
1. Suspended deposit and withdrawal services of all crypto assets and enacted an emergency shutdown of the hot wallet server.
2. Transferred the remaining assets from the compromised hot wallet to safe addresses.
3. Rebuilt and redeployed the wallet system.
4. Initiated rigorous investigations into the attack, led by CoinEx wallet team and security team, based on the information and clues collected.
5. Contacted peer exchanges to freeze the assets of accounts associated with the hackers.

These security measures serve two purposes. First, to seal the breach, protect remaining assets, and prevent greater losses. Second, to effectively trace and investigate the sequence of events and seek support from industry partners to collectively deter the hackers’ illegal actions. Going forward, while maintaining security as the utmost priority, we will endeavor to expeditiously reinstate withdrawal functionality. We will undertake a comprehensive calculation of losses resulting from the incident and implement full upgrades to CoinEx's security infrastructure.

4. What is the exact amount that got hacked?

Total losses from the incident are still being calculated. As of now, estimated losses are approximately $70 million USD. However, this only represents a small portion of our total assets. CoinEx solemnly promises: for the user losses resulting from this incident, we will provide 100% compensation. As we are working to fully remediate this incident, our team is diligently building an entirely new wallet architecture to reopen withdrawal service in a secure manner. We appreciate your patience during this process.

5.Will the assets that are deposited during the suspension period be credited to our spot account once the services are resumed?

Based on our current estimates of losses from the incident, CoinEx promises the affected users will be compensated 100% to safeguard users' assets. Please refer to our official social media channels, community platforms, and website announcements as we will promptly communicate our security check progress.

6. It is announced that CoinEx will 100% compensating for affected users, does CoinEx have any insurance for recovering funds to prove that CoinEx is capable of compensating?

In response to the recent hack, CoinEx has swiftly implemented a series of emergency measures. We assure you that based on current loss estimates, we are able to fully compensate users affected by the hack. Over the past 6 years, CoinEx has weathered severe challenges, yet we always have users' interests at heart. What's more, the development of a resilient crypto ecosystem will depend on the collective efforts of all stakeholders. Hereby, we urge our industry peers to stand firm together. We must foster tighter partnerships so we minimize the negative impacts of malicious attacks going forward.

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