As we approach 2022, cryptocurrency breaches persist, with Peckshield reporting losses of $6.8 million in ETH-based tokens via Liechtenstein-based LCX AG.
One of LCX AG’s hot wallets has been hacked due to a security issue. They announced the news on Twitter, assuring clients that they had taken safety precautions to safeguard other wallets and valuables. Withdrawals and deposits are now halted. ETH tokens had been moved to the hacker’s Ethereum wallet: 0x165402279f2c081c54b00f0e08812F3fd4560a05. On 8th January 2022, the transfer took place at around 10 p.m. UTC. Based on PeckShield, the liabilities totaled up to $6.8 million. The majority of the losses were $3.4 million in USDC, $2.2 million in LCX, $504,000 in ETH, $468,000 in SAND, $114,000 in QNK, $47,400 in LINK, $10,800 in ENJ, and $9,700 in MKR.
What Exactly Is LCX AG?
LCX is a cryptocurrency exchange, a decentralized exchanges aggregator, and a tokens sale service based in Liechtenstein. We deeply value the assistance from our clients, other platforms, cybersecurity professionals, and the larger cryptocurrency ecosystem throughout this challenging period, they added.
Hacking Is Getting All Too Common
Hot wallet attacks are prevalent these days. Bitmart lost $196 million as 2 hot wallets were hijacked on 5th December 2021, causing a loss of Ethereum and BSC. Bitmart has made promises to refund the money, but clients who have been affected are growing impatient.
After $77 million in ERC-20, BSC, and Polygon tokens, the exchange suspended transfers were moved out of AscendEX’s hot wallet on 11th December 2021. In August 2021, Liquid Global reported a compromise of its warm wallets. Those securities migrated to cold storage wallets, and cash transactions were halted.
But they’re usually online; hot wallets benefit from becoming simple to utilize. Web-based, mobile, and desktop wallets are the three available wallets. Offline wallets, also called hardware wallets, are typically shaped by a USB flash drive. Hardware wallets are impenetrable to cyber-attacks.
In the last 24-hours, the LCX coin has lost 9.8 percent of its value. According to the report, it’s a lengthy, sustained reward scheme to encourage multiple players to engage in the community. LCX AG releases the LCX token in compliance with Liechtenstein’s policies and guidelines. Law teams have determined that the LCX token is a utility token in the United States, Singapore, and Liechtenstein.