CoinEx Makes a Comeback: Deposits and Withdrawals to Resume Following $70M Hack

CoinEx Makes a Comeback: Deposits and Withdrawals to Resume Following $70M Hack

The cryptocurrency exchange CoinEx is making a
comeback after a devastating $70 million hack. The exchange announced today (Friday) that it had taken measures to rebuild its wallet system and ensure the safety
and security of its users’ assets.

As a result, CoinEx is now gradually resuming deposit
and withdrawal services for a substantial number of cryptocurrencies, totaling
190. The platform has asked users to use new deposit addresses to
prevent permanent loss of assets.

Navigating Challenges and Restoring Trust

„The wallet system is operating safely and
steadily at present. We will gradually resume deposit and withdrawal services
for the remaining 500+ cryptos,” the exchange said.
„Since the resumption of operations will be processed frequently, there will be
no further or separate announcements for each crypto.”

The exchange has implemented a 100% asset reserve
policy, providing an added layer of protection against potential security
threats. Notably, CoinEx assured its users that their assets were not affected
by the hack and that any financial losses would be covered by CoinEx’s User
Asset Security Foundation.

The exchange found itself amid a security crisis
after suffering a suspected hack this month that compelled the platform to
halt all withdrawals. The incident was triggered by the detection of abnormal
withdrawals from several hot wallet addresses storing CoinEx’s exchange assets.
Initial estimates suggest that the losses could tally up to a staggering $70 million and involved Ethereum (ETH), Tron (TRON), and Polygon (MATIC).

Founded in 2017, CoinEx quickly established itself
as a prominent crypto exchange, particularly through its focus on Bitcoin Cash
(BCH). In recent years, the exchange expanded its offerings, including futures
trading, leveraged trading, options trading, and access to over 100 token
projects.

Meanwhile, CoinEX decided to cease its operations in New York in June, following a settlement agreement with the Office
of the New York Attorney General (NYAG). Additionally, the exchange, based in
Hong Kong, agreed to pay $1.7 million, including refunds to investors, in
response to allegations of improper registration and misrepresentation as a
cryptocurrency exchange.

CoinEX Faces Regulatory Heat

CoinEX found itself in the regulatory crosshairs after the NYAG, Letitia James, accused the exchange in February of failing to
properly register as a securities and commodities broker-dealer. On top of
that, the exchange faced allegations of misrepresenting itself as a
cryptocurrency exchange.

Attorney General James said: „Our laws are
designed to protect New Yorkers, and when companies ignore them, they put
residents, investors, and businesses at risk. The days of crypto companies like
CoinEx acting like the rules do not apply to them are over. My office will
continue to protect New York investors and ensure our state’s laws are
followed.”

In addition to the financial settlement, CoinEX was
prohibited from creating new accounts for U.S. customers, although existing
customers could still withdraw their cryptocurrency holdings. The exchange was
also ordered to implement geo-blocking measures to prevent new IP addresses
from New York from accessing its web and app trading platforms.

This article was written by Jared Kirui at www.financemagnates.com.

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