Fri. Aug 19th, 2022

A cryptocurrency exchange, backed by Tim Draper, is restricting the activities of its users after what it describes as a “sophisticated attack.”

Coinhako Restricts Withdrawals Due to Attack

Coinhako, a Singapore-based cryptocurrency exchange backed by Tim Draper, has restricted its users from withdrawing their funds following what it describes as a “sophisticated attack.” The exchange told its users on Friday that the ‘Account Send’ function for cryptocurrencies had been temporarily disabled.

A spokesperson for the exchange came out to comment that the restriction was due to network maintenance. However, the exchange confirmed on Saturday that it had been attacked and, therefore, restricted all accounts to stop all unauthorized transactions on the platform until the issue was fully resolved. Since then, Coinhako is yet to provide further details on the nature of the attack or any information on whether assets were stolen or not.

A spokesperson of the exchange posted on Telegram that they had detected a coordinated and sophisticated attack on specific Coinhako accounts. As a result, and as a preventive measure, the exchange had disabled the send function.

So far, less than 20 people on the Coinhako exchange are believed to be affected directly by the cyberattack. The spokesperson pointed out that the attack was not on their wallet, and the user’s private keys were not compromised.

Coinhako has been around for six years now and has become a popular cryptocurrency exchange in Singapore due to its support of Singapore dollar trading pairs. The exchange also started its OTC platform in October last year.

While speaking with CoinDesk, the CEO of the exchange, Yusho Liu, stated that the send function of their users would remain restricted as the platform takes key countermeasures to curb unauthorized transaction outflows. Furthermore, Coinhako has reset passwords and two-factor authentication for all its users.

Although the withdrawal of funds has been temporarily disabled, users can still deposit and trade cryptocurrencies. Also, the withdrawal of fiat currencies is still possible on the platform. The users impacted by the attack have been fully reimbursed, the CEO confirmed. However, Coinhako is yet to respond to questions regarding the nature of the attack.

Coinhako Latest Exchange to Fall Victim to Cyberattack

Coinhako joins the long list of cryptocurrency exchanges to fall victim to cyberattacks over the past decade. In the past few years, major hacks include that of Coincheck, Binance, Bithumb, and several other crypto exchanges.

Cryptocurrency exchanges continue to find it hard to protect their funds and that of their users, with billions of dollars in cryptocurrencies lost to hackers since the days of the Mt. Gox hack a few years ago.

In December 2014, Coinhako received a six-figure personal investment from venture capitalist Tim Draper. Since then, the exchange has become perhaps the leading gateway to cryptocurrencies in Singapore.

Tim Draper was approached for comments regarding this latest development, but he is yet to respond to the request. Coinhako is scheduled to become fully operational again on March 1. However, it is unclear if the exchange would resume operations at the said date.

By Gerelyn