Blog / Our News / Simpleswap Helped Coinex Stop Fraudulent Transactions

SimpleSwap Helped CoinEx Stop Fraudulent Transactions

Mar 13, 2024
8 min read

This blog post will cover:

  • About CoinEx and the hack
  • CoinEx upgraded infrastructure for holistic asset security
  • SimpleSwap’s input
  • Final thoughts

Security is paramount in the crypto sphere. The recent incident involving the centralized virtual asset exchange CoinEx has shed light on the vulnerabilities that even well-established platforms might face. 

In this article, we will talk about the collaboration between CoinEx and SimpleSwap that led to the successful restoration of stolen funds.

About CoinEx and the hack

CoinEx, a prominent cryptocurrency exchange, had to deal with an unauthorized infiltration incident in September 2023. Compromised private keys allowed hackers to steal over $70 million worth of crypto. The breach primarily targeted assets such as BTC, ETH, XRP, BCH, and SOL. Fortunately, the assets held in the cold wallets remained untouched, keeping a substantial portion of the platform's total assets safe.

The exchange quickly took action when they discovered the security breach and established a special response team to identify the cause. 

CoinEx upgraded infrastructure for holistic asset security

CoinEx’s security team has deployed enhanced mechanisms holistically to strike a balance between convenience and security in crypto asset management within its hot wallets, including multi-signature protocols, trusted execution environments, independent infrastructure, physical separation, real-time monitoring of abnormal activities, multi-location backup of critical information, and automated alert system.

At the same time, CoinEx’s security team has also upgraded the underlying cold wallet architecture through multidimensional mechanisms such as proprietary cold storage systems, offline private keys, multi-signature protocols, real-time monitoring of abnormal transactions, strict whitelisting, and dedicated hardware authentication, providing users with the highest degree of asset protection.

SimpleSwap’s input

In the wake of the security breach, CoinEx reached out to SimpleSwap for assistance in recovering a portion of the stolen funds. The collaborative efforts between the two platforms played a major part with mitigating the impact of the hack.

Our support team played an important role in preventing substantial monetary losses for the victim. The teams worked in tandem to analyze and address the situation promptly, demonstrating the strength of solidarity within the crypto community. The amount of restored funds was around 11.80558979 BTC, approximately equal to USD $780,000 at the time of writing.

Here are the transaction hashes:

One of the key outcomes of this collaboration is the fact that CoinEx users’ assets remained safe in this incident. The coordinated efforts of both teams ensured that the situation was addressed swiftly and effectively, underscoring the importance of collaboration in the crypto space.

Final thoughts

The events surrounding this incident highlight the symbiotic relationship that exists within the crypto sphere. This collaboration in a time of crisis showcases the supportive nature of the crypto community.

Maintaining people's trust and upholding an excellent reputation are fundamental to success in the Crypto World. By openly addressing such cases, we emphasize that the crypto environment can be both friendly and supportive.

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