Attention Crypto Traders: Lykke Halts Operations Following Cyberattack
UK-based cryptocurrency exchange Lykke recently experienced a security breach resulting in the loss of over $22 million, leading to a sudden cessation of trading activities on June 10. The exchange confirmed the incident in an official statement and has temporarily suspended trading and withdrawals to prevent further damage.
Withdrawal Operations Suspended due to Cybersecurity Incident
Following the cyberattack, Lykke identified the IP address of the perpetrator and initiated an investigation. An external cybersecurity firm has been engaged to block and recover the stolen assets, with a criminal investigation in progress.
- The exchange came under scrutiny from on-chain investigator SomaXBT for allegedly concealing the breach.
- SomaXBT uncovered that hackers stole 158 BTC and 2,161 ETH, equating to $19.5 million.
- MetaMask developer Taylor Monahan confirmed that the total stolen assets amounted to $22.4 million.
Money Laundering Scheme Uncovered in Lykke Hack
Further examination revealed that the hacker exchanged the stolen Ether for DAI and transferred the Bitcoins to multiple wallets. Such actions are common among hackers to obfuscate the origin of stolen funds before integrating them back into the cryptocurrency ecosystem.
- The cybersecurity incident occurred after the UK’s Financial Conduct Authority warned against Lykke for operating without proper authorization, cautioning investors to interact with the platform.
Continued Rise in Crypto Security Breaches
Lykke’s cyberattack is part of a rising trend of security breaches affecting the cryptocurrency industry. Just recently, another exchange experienced a significant breach where cybercriminals made off with millions in BTC, emphasizing the persistent vulnerabilities in the sector.
- The frequency and severity of cyberattacks in the crypto space have escalated, with stolen assets already surpassing $600 million in 2024, compared to $433 million in the first half of 2023.
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