Indodax Crypto Exchange Hit by $20 Million Hack
Indonesian crypto exchange Indodax was hacked, losing $20 million in assets, prompting system maintenance while assuring users their balances are secure.
Indodax Suffers Major Security Breach
Indonesian cryptocurrency exchange Indodax has become the latest victim of a $20 million hack, affecting multiple networks. Blockchain security firm Cyvers reported that hackers targeted Indodax, stealing 5,204 ETH, 6.8 million POL tokens, 16.7 million TRX tokens, 25 BTC, and other digital assets.
Following the breach, Indodax halted services for system maintenance, assuring its users that their balances remain unaffected. Despite this assurance, the incident has raised concerns about the security of crypto exchanges and the broader digital asset market.
Details of the Indodax Hack
The hack initially saw approximately $14.4 million worth of assets converted into Ethereum (ETH), but this amount soon increased to over $20 million, according to Cyvers. The stolen assets were diverse, including ETH, POL, TRX, BTC, and other ERC-20 tokens.
A detailed analysis by Tay, an observer, revealed that the stolen funds included 5,204 ETH worth around $12 million, 6.8 million POL tokens valued at $2.6 million, and 16.7 million TRX tokens worth $2.5 million. Additionally, 25 BTC and various other digital assets were taken. These unauthorized transactions were spread across different blockchains, further complicating the tracking of stolen funds.
Indodax responded by performing “complete maintenance” to secure its system, temporarily shutting down its website and app. The exchange reassured its users, stating that both their crypto and fiat balances were safe despite the breach.
Causes and Previous Security Incidents
The exact cause of the breach has not been confirmed, but Daddy Lavid, CEO of Cyvers, suggested that the hackers may have gained access to private keys or exploited access control weaknesses within the exchange. Such vulnerabilities are often at the root of crypto exchange hacks.
This is not the first security issue Indodax has faced. In June 2023, two fraudsters were arrested for impersonating Indodax on social media, deceiving potential investors with fake investment schemes. These criminals stole around 625 million Indonesian Rupiah (~$40,500).
Indodax, with over 6.8 million users, remains one of Indonesia’s leading crypto exchanges. However, this recent breach emphasizes the increasing risk facing the cryptocurrency exchange sector. In July 2024, India’s WazirX exchange suffered a major $234.9 million hack, showing the global vulnerability of these platforms.
Increasing Crypto-Related Crimes
Crypto-related crimes are on the rise globally. The FBI reported over 69,000 complaints in 2023 regarding cyber-enabled financial crimes involving cryptocurrency, with losses exceeding $5.6 billion. Among these, investment fraud proved to be the most damaging, accounting for $3.9 billion in losses.
As cybercrime becomes more sophisticated, law enforcement agencies stress the importance of reporting these incidents to help prevent further fraud. FBI Director Christopher Wray emphasized that the growing complexity of these scams poses a major threat to crypto investors.
Indodax's hack serves as another reminder of the serious security challenges facing cryptocurrency exchanges globally and the need for better protection for investors.
