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CoinEx Offers “Generous” Reward to Hackers in Exchange for Return of Stolen Assets

Author

Jay Solano

Tags

Tags Editor's Choice

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Editor's Choice

Category

News - Archive

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Editor's Choice

Reading time

2 mins
Last update

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After being hit by a security breach, cryptocurrency exchange CoinEx is taking an unconventional approach. Instead of only pursuing legal action, the exchange has published an open letter to the hackers, offering a “generous bug bounty” in exchange for the return of the stolen funds.

CoinEx is appealing to the hackers’ sense of understanding, highlighting the profound impact of such a theft on its user base. In the letter, they express their hope that the hackers understand the worries and disappointments of the affected individuals and urge them to address the situation in a secure, rational, and user-centric manner. CoinEx is actively seeking dialogue, urging the culprits to engage either on the blockchain or via the exchange’s official email.

The financial toll from the breach is substantial. CoinEx estimates its losses to be in the ballpark of $70 million. The unauthorized transactions implicated several cryptocurrencies, including Ethereum (ETH), Tron (TRON), and Polygon (MATIC). However, the exchange was quick to reassure that the stolen amount is but a fraction of their total assets, saying, “the affected fund is just a very small portion of CoinEx’s total assets.”

CoinEx also confirmed its commitment to compensating all affected users for their losses. In terms of operational updates, the exchange clarified that it will cautiously restart withdrawal services. They warn users to be wary of any claims suggesting that CoinEx has already resumed these services, labeling them as false and potentially fraudulent. CoinEx has laid out a plan to gradually reinstate withdrawal functionalities, stressing that ensuring the absolute security of assets is paramount before this process begins. They aim to have the services fully operational within the next seven working days.