Nearly $100 Million Stolen From Crypto Exchange

  • By Steven
  • Published: Aug 18, 2022
  • Last Updated: Aug 18, 2022

A whopping $97 million worth of cryptocurrency was stolen from Liquid, a Japanese crypto exchange. The attack is yet another in a string of digital offensives against cryptocurrency platforms.

How was the Crypto Stolen?

A statement released by Liquid reveals that the hacker(s) obtained access to Liquid crypto users' digital wallets to store alternative forms of currency. The company identified the unauthorized crypto access, noting that slightly more than $91 million of crypto had been shifted out of the platform's wallets. 

What Happened to the Stolen Crypto?

According to a statement released by the Liquid Operations and Technology teams, about $16 million worth of the assets were frozen, meaning they were disabled for onchain movement. All in all, slightly less than 70 unique cryptocurrency assets were plucked and transmitted to alternative exchanges or venues used for decentralized finance swapping. 

Liquid's public relations specialist quickly noted that the attack did not impact some of the assets parked in its accounts. In other words, the platform was still capable of functioning following the attack, albeit with security deficiencies. In particular, company spokespeople highlighted the fact that its Liquid Earn digital wallets were unaffected by the hack.

How Should Liquid Customers Respond to the Hack?

Liquid prompted its customers to avoid depositing bitcoin and other cryptocurrencies into the digital wallets hosted by the company's platform. Furthermore, Liquid temporarily paused all crypto withdrawals after the cyber attack.

Why is the Attack Significant?

Liquid is one of the crypto industry's top dogs when gauged according to daily trading volume. Crunch the numbers, and you will find Liquid is one of the biggest crypto platforms in the entire world. In fact, Liquid has processed hundreds of millions of dollars worth of transactions in 24-hour periods. 

The fact that Liquid was hacked in addition to several other cryptocurrency platforms clearly indicates that nearly every crypto platform is vulnerable, partially due to a lack of state and federal regulation resulting in minimal standards for digital security.

How Can Similar Attacks be Prevented?

If you own or manage a business or have a computer you use at home, you can do your part to avoid becoming the next cybersecurity statistic by updating your digital defenses. Bolster your computer and network security with the industry's latest protections, and you'll surf the web and use your computer for other purposes in total confidence.

Who is Responsible for the Hack?

Finally, let's shift our attention to the criminal behind the Liquid crypto scam. Liquid refused to provide details about the hacker's identity, likely because the company does not know which hacker or hacking collective is responsible for the attack. The individual or collective responsible for the attack has only been identified with the title of unauthorized party.

However, Liquid representatives noted that the miscreant used specific wallets to rob the funds, stealing a plethora of coins, including bitcoin, tron, ether, stablecoins, and more. The breadth of crypto stolen indicates the hacker planned on converting them through decentralized exchanges.

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