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Cryptocurrency exchange CoinEx, which recently experienced a security breach, has reached out to the hacker to initiate negotiations while also offering a substantial bounty reward should they choose to return the misappropriated assets.
The infamous Lazarus Group, linked to North Korea, has been identified as the perpetrators behind the breach at CoinEx.
CoinEx Invites Dialogue with Hackers
In an open letter dated Sept. 15, CoinEx expressed that the hacking incident served as a crucial lesson for the organization, enhancing the team’s awareness regarding the necessity of maintaining robust security for assets on the platform.
The letter, directed towards the hackers, encouraged communication and negotiations with those responsible for the breach, emphasizing that the stolen assets belonged to millions of customers who place their trust in the crypto exchange.
“We hope you recognize the impact of this event on each one of those users. We would appreciate it if you understand the concerns and frustrations of these affected users. We sincerely invite you to work with us to resolve this issue in a securer, more reasonable, and more user-friendly manner.”
CoinEx also proposed a “generous bug bounty” to the hackers if they returned the assets, while committing to enhance its security framework. The company further invited the attackers to collaborate on future upgrades to its security system.
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As previously reported by CryptoPotato, the CoinEx breach occurred on Sept. 12, with attackers siphoning approximately $55 million in assets from the platform’s hot wallets, according to blockchain security firm SlowMist. The incident prompted the crypto exchange to suspend all deposits and withdrawals while investigations were underway.
Meanwhile, on-chain investigator ZachXBT identified the North Korean hackers Lazarus Group as the group responsible for the breach.
Approximately $70 Million Taken from CoinEx
In a subsequent update, CoinEx indicated that while the company was still assessing the full extent of the financial impact, initial findings suggested that around $70 million was taken from the platform, exceeding earlier estimates. However, the crypto exchange emphasized that the theft constituted a minor fraction of its total assets.
CoinEx did not specify when services would resume but mentioned that withdrawals would be reinstated in phases following thorough security evaluations. The firm also stated that it is working on completing wallet upgrades in the coming week while assuring affected users of a full reimbursement.
“Currently, we focus on upgrading the wallet architecture, calculating losses, and freezing related suspicious addresses by coordinating with industry partners and peer exchanges. Regarding compensation plans for the stolen assets, we are now formulating options. The compensation will be provided per-coin, with details to follow in our official announcements later.”
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