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Lykke Exchange Admits Hack Amid Withdrawal Freeze

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Lykke Exchange Admits Hack Amid Withdrawal Freeze

Lykke, a cryptocurrency exchange founded in 2015 and headquartered in Switzerland, has shut down withdrawals following an attack on June 4. This was publicly revealed through a social media post on June 10. The exchange assured its users that their funds are still secure and will be retrieved in due time. Both of its divisions, Lykke UK and Lykke Corp AG, were impacted by the incident. In the same thread, Lykke mentioned that the suspension of withdrawals was a preemptive action to avoid further complications.

Lykke is known as a centralized exchange and promotes itself as a “no fee crypto exchange” on its website. It highlights its evolution from a “prominent forex broker” as part of its credentials. The attack came to public attention through blockchain security expert, SomaXBT, who claimed to have identified the breach on June 9. SomaXBT accused the Lykke team of concealing the security breach, alleging that $19.5 million worth of crypto assets had been lost. To substantiate the claim, SomaXBT shared a screenshot supposedly from Lykke’s Discord channel. The message in the screenshot noted that the exchange was undergoing “unscheduled full system maintenance.”

Two days earlier, on June 8, a customer had taken to the social platform X to report issues with accessing the exchange and mentioned rumors about a possible hack. The user’s concerns were confirmed when, on June 10, Lykke acknowledged the attack and extended apologies to those affected. The team stressed that they have substantial capital reserves and a diverse investment portfolio, which they believe will mitigate potential losses from the hack, thus ensuring that user funds remain secure.

Further, Lykke’s team announced that they had managed to trace the IP addresses of the attackers, which would aid in a forthcoming criminal investigation. They also disclosed that they had employed a cybersecurity firm to assist in “blocking and recovering the stolen assets.” Initial estimates by Lykke suggest that more than $22 million was lost due to the attack.

The phenomena of hackers targeting centralized exchanges is not new, and Lykke’s situation brings more attention to this ongoing issue. Earlier this year, on April 19, on-chain researcher ZachXBT reported that another cryptocurrency exchange, Rain, had been hacked two weeks earlier, resulting in a loss of $14.1 million. Rain later validated the report but reassured its users that no customer funds were lost since the breach was quickly patched using the exchange’s own reserves.

The persistence of such exploits underscores the need for enhanced security protocols within centralized exchanges. Users are becoming increasingly aware of the risks involved and expect exchanges to be transparent about security breaches. In the case of Lykke, the initial attempt to downplay the security issue might have undermined user trust

26 thoughts on “Lykke Exchange Admits Hack Amid Withdrawal Freeze

  1. Seeing Lykke’s transparency and quick security measures is truly commendable. Our funds are safe!

  2. How am I supposed to believe my funds are safe when theyve already lost millions? This is a joke.

  3. Impressed with Lykke’s workload post-hack! They truly care about user security and transparency. Feeling safe!

  4. Lykke taking such swift action reinforces my faith in their platform. Great job securing user interests!

  5. Finding the attackers’ IP won’t bring back my lost trust. Just fix your security, Lykke! 😤⚡

  6. So, they knew about the breach and tried to sweep it under the rug? Shame on Lykke.

  7. Seeing Lykkes promptness and transparency boosts my confidence in their platform. Keep it up team!

  8. Impressed with Lykke’s resilience and transparency following the hack. Proof that they truly value their users.

  9. Terrific handling of the situation, Lykke! Shows their dedication to protecting user assets. Well done! 🛠️💎

  10. So tired of these centralized exchanges failing to protect assets. Lykke is just another name to add to the list. 📝🚫

  11. Feeling reassured by Lykke’s actions post-attack. They are setting a standard in security and transparency!

  12. Outstanding response, Lykke! Proving that even in crises, user trust is paramount. Proud to be a part of this exchange.

  13. A no-fee exchange? More like no-security exchange. I’m done with Lykke. 😤🔐

  14. Proud of how Lykke managed the recent hack. Their proactive approach ensures our funds are safe. Well done team! 👏💖

  15. Impressed by Lykkes efficient action and communication. True leadership in crisis management.

  16. Lykke’s commitment to transparency and user security sets a high standard for other exchanges. Keep it up! 🙌💎

  17. Great job Lykke for tracing the IP addresses and starting a criminal investigation. Justice will be served!

  18. Lykkes strong communication during the hack reassured me of their commitment to users. Great job!

  19. Lykke’s proactive approach is what sets them apart in the crypto world. Bravo on safeguarding our investments!

  20. Promoting transparency while hiding hacks? Lykke has been truly disappointing. 😔💔

  21. Feels like we’re constantly hearing about another exchange getting hacked. When will these centralized platforms learn?

  22. Grateful to see Lykke being proactive and taking responsible measures to secure user funds. Better days ahead! 🌞👌

  23. Lykke’s transparency and quick response exemplify top-notch customer care. Proud to be a user!

  24. Nice try saying our funds are secure after losing millions and shutting down withdrawals. Unbelievable!

  25. Kudos to Lykke for prioritizing user safety and addressing the hack head-on. Reassuring to see such excellent risk management! 💪🔒

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